Tag: bps

Karur Vysya Bank posts 24% growth in Q4 net

Banking & Finance

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Karur Vysya Bank (KVB) on Friday reported a 24 per cent year-on-year growth in net profit for the fourth quarter of FY21 at ₹104 crore supported by lower provisions for bad loans and contingencies. The bank reported a net profit of ₹84 crore in the year-ago quarter.

The bank’s provisions (other than tax) and contingencies fell by 84 per cent to ₹71.45 crore (₹429.27 crore).

Operating profit of the bank, on a YoY basis, fell by 50 per cent to ₹249.78 crore (₹499.83 crore) after expending ₹62 crore towards arrears payable under XI Bi-partite settlement (BPS) and interest on interest reversal of ₹25 crore as per an order of the Supreme Court.

For the full year, the bank’s net profit grew 52.76 per cent to ₹359 crore (₹235 crore) while operating profit during the period fell to ₹1,429 crore (₹1,761 crore).

Operating profit hit

The bank, however, said that various factors affecting the operating profit include arrear payment under XI BPS and corresponding provisions for various staff retirement benefits amounting to ₹245 crore in all in addition to the interest-on-interest reversal of ₹25 crore mentioned above.

Total business of the bank as on March 31 stood at ₹1.16 lakh crore (₹1.07 lakh crore). While gross advances of the bank stood at ₹52,820 crore (₹48,516 crore) as of FY21, total deposits grew to ₹63,278 crore (₹59,075 crore) during the period.

“Credit growth resulted from improved off take in retail and business segments as well as higher growth witnessed in the jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels,” the bank said in a release.

Gross NPA of the bank, on a YoY basis, improved to 7.85 per cent (8.68 per cent) as of March while net NPA improved by 51 bps and dropped to 3.41 per cent (3.92 per cent) during this period.

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SBI hikes minimum interest rate on home loans by 25 bps to 6.95%

Banking & Finance

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In a clear signal that soft interest cycle for home loan borrowers is over, State Bank of India (SBI) has hiked the minimum interest rate on home loans by 25 basis points (bps) from 6.70 per cent to 6.95 per cent with effect from April 1, 2021.

This hike in minimum home loan rate by SBI will prompt other lenders to follow suit.

SBI had lowered the minimum interest rate from 6.80 per cent to 6.70 per cent on March 1, 2021 for a limited period up to March 31, 2021.

The Bank will also charge a consolidated processing fee. This will be 0.40 per cent of the loan amount plus applicable GST, subject to a minimum of ₹10,000 and maximum of ₹30,000 plus GST.

However, for builder tie-up projects where individual TIR (title investigation report) and valuation is not required, the processingaforementioned fee will be 0.40 per cent of loan amount subject to maximum recovery of ₹10,000 plus applicable tax. And, if TIR and Valuation is required, then normal charge will be applicable., as per the Bank’s website.

The lender had waived home loan processing fees till March 31, 2021.

In February, the Bank said it expects to double its home loan portfolio in the next five years to Rs ₹10 lakh crore on the back of higher economic growth and growing preference of the new generation to buy a home early.

SBI took about 10 years to grow its home loan portfolio from ₹89,000 crore in FY2011 to touch the ₹5 lakh crore mark, Chairman Dinesh Kumar Khara told media in February 2021.

SBI took about 10 years to grow its home loan portfolio from ₹89,000 crore in FY2011 to touch the ₹5 lakh crore mark, Chairman Dinesh Kumar Khara told media at a press meet in February 2021.

 

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