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Karur Vysya Bank (KVB) maintained strong growth momentum in net profit for the second quarter as the lender saw its total business cross ₹150,000 crore for the first time.
The bank’s net profit grew 51 per cent to ₹378 crore for the quarter ended September 30, compared with ₹250 crore in the year-ago period. (In Q1 of this fiscal, the bank reported a 57 per cent rise in its net profit at ₹359 crore).
The bank’s operating profit grew 11 per cent to ₹638 crore from ₹572 crore in Q2 of the previous fiscal.
Net interest income grew by 11 per cent to ₹915 crore (₹821 crore in the year-ago quarter). The net interest margin was at 4.07 per cent, down from 4.10 per cent a year ago. Non-interest income for the September 2023 quarter rose 40 per cent to ₹339 crore (₹242 crore).
Operating expenses were higher by 25 per cent at ₹616 crore (₹491 crore). NPA provision was lower at ₹109 crore (₹206 crore).
Gross NPA declined to 1.73 per cent during the September 2023 quarter compared with 4.02 per cent a year ago and 1.99 per cent in the June 2023 quarter. Net NPA fell to 0.47 per cent compared with 1.38 per cent in the year-ago quarter and 0.59 per cent in the preceding quarter.
‘Strong performance’
“We have delivered yet another quarter of strong top line and bottom line performance with the highest-ever quarterly net profit and consistent performance in terms of growth, profitability, and asset quality for the first half year ended September 20, 2023,” said Ramesh Babu B, Managing Director & CEO, The Karur Vysya Bank.
Total deposits grew by 13 per cent to ₹83,068 crore compared with ₹73,398 crore a year ago. CASA’s share declined to 32 per cent from 35 per cent a year ago. CASA deposits grew by 3 per cent to ₹26,794 crore (₹25,914 crore a year ago).
Gross advances rose 15 per cent y-o-y to ₹70,448 crore compared with ₹61,086 crore a year ago.
“Our bank had crossed a historical milestone of the total business of ₹1.5 trillion during the last quarter reached a level of ₹1,53,516 crore. We had crossed ₹1.25 trillion in the March 2022 quarter, and the next ₹0.25 trillion has been crossed within a short span of 18 months,” said Ramesh Babu .
During FY18, the bank’s total business crossed ₹1-lakh crore and stood at ₹102,863 crore.
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