Tag: karur vysya bank

Quarterly Earnings: Karur Vysya Bank net profit jumps 43% in Q2

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Total deposits grew 7% to Rs 65,410 crore, up from Rs 61,122 crore. The growth was aided by sustained improvement in CASA portfolio and retail term deposits, it added.

Karur Vysya Bank (KVB) on Monday reported an increase of 43.5% in its net profit to Rs 165 crore for the second quarter of FY22, as against Rs 115 crore in the corresponding quarter of the previous year. Total income stood flat at Rs 1,561 crore, compared with Rs 1,577 crore.

KVB in a release said the net interest income for the quarter improved by 13.1% to Rs 680 crore, as against Rs 601 crore, while the net interest margin stood at 3.75%. Fee-based income (excluding treasury profit) was at Rs 144 crore, compared to Rs 119 crore during the year-ago period. Treasury profit was lower at Rs 16 crore as compared to Rs 120 crore during the same period last year.

Gross NPA declined by 55 bps to 7.38% (Rs 3,972 crore), compared with 7.93% (Rs 3,998 crore) a year ago. Net NPA stood at Rs 1,538 crore as against Rs 1,428 crore. The provision coverage ratio was at 76.28% (75.19% a year ago). The Basel III CRAR was at 18.82% (with CET1 ratio of 16.79%), up from 18.41%, it said.

The total business stood at Rs 1,19,260 crore, registering a Y-o-Y growth of 7% from Rs 1,11,530 crore. Gross advances grew 7% YoY to Rs 53,850 crore, from Rs 50,408 crore a year ago. Improved credit offtake in the retail and business segments as well as jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels, aided the credit growth, the release said. The jewel loan portfolio registered a Y-o-Y growth of Rs 2,319 crore (21%) and stood at Rs 13,460 crore.

Total deposits grew 7% to Rs 65,410 crore, up from Rs 61,122 crore. The growth was aided by sustained improvement in CASA portfolio and retail term deposits, it added.

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Karur Vysya Bank posts ₹165-cr net in Sept quarter, highest in last 17 quarters

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Old private sector lender Karur Vysya Bank has reported a 43.5 per cent rise in its net profit at ₹165 crore for the quarter ended September 30, 2021 when compared with ₹115 crore in the same period previous fiscal

“The net profit of ₹165 crore is the highest in the last 17 quarters,” B Ramesh Babu, Managing Director & CEO of KVB, told BusinessLine.

He said the KVB’s posted net profit on account of a well-crafted strategy amid some challenges. “With deeper focus, recoveries were higher than slippages during this September quarter. So interest reversals have come down, thereby improving our net interest margin at 3.75 per cent for the quarter,” he added.

Net interest income grew by 13 per cent at ₹680 crore (₹601 crore in the year-ago quarter). Fee based income for the September 2021 quarter (i.e. excluding treasury profit) was at ₹144 crore (₹119 crore). Treasury profit was lower at ₹16 crore (₹120 crore in the same period last year).

Operating expenses were higher at ₹470 crore (₹424 crore), while total expenses were lower at ₹1,187 crore as compared to ₹1,217 crore.

Operating profit of the bank increased to ₹374 crore from ₹360 crore in a year-ago period.

“Despite providing 1/3rd for family pension and lower treasury profit during the quarter, we could achieve this performance, ‘’ said Babu.

As on September 30, 2021, Gross NPA declined to 7.38 per cent as compared to 7.93 per cent a year ago, while net NPA was maintained at 2.99 per cent

“We were able to contain our restructuring portfolio to less than 3 per cent and NPA percentage has been coming down continuously. NPA was maintained without any write off and sale of any asset to ARC during the quarter,” he added.

Total deposits grew by 7 per cent at ₹65,410 crore as compared to ₹61,122 crore a year ago. Growth was aided through sustained improvement in CASA portfolio and retail term deposits.

Gross advances grew by 7 per cent at ₹53,850 crore (₹ 50,408 crore). Improved credit off take in the retail and business segment as well as jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels, aided the credit growth.

“The disbursement level in last one month has been much higher than the levels of last two years,” said Babu

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RBI authorises Karur Vysya Bank to collect direct taxes, BFSI News, ET BFSI

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Private sector Karur Vysya Bank on Tuesday said it has commenced the integration process with the Central Board of Direct Taxes to collect direct taxes on its behalf, following the approval it received from the Reserve Bank. “Reserve Bank of India has authorised Karur Vysya Bank to collect direct taxes on behalf of Central Board of Direct Taxes. Following the approval received, the bank has initiated the integration process with CBDT“, the Tamil Nadu based-bank said in a statement.

Once the integration process gets completed, the bank customers can remit the direct taxes through any branch or through net banking or mobile banking services (DLite Mobile application).

“It has been the long standing requirement of our customers that they should be able to pay their direct taxes through our bank. We are happy that we will be in a position to offer this service to our customers”, the bank’s MD and CEO, B Ramesh Babu said.

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Karur Vysya Bank donates Rs 3.14 crore to PM Cares Fund, BFSI News, ET BFSI

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Private sector Karur Vysya Bank on Friday said it donated Rs 3.14 crore to the Prime Minister Cares Fund from its corporate social responsibility funds. The Bank’s MD and CEO B Ramesh Babu handed over the demand draft to Finance Minister Nirmala Sitharaman in New Delhi recently, the Tamil Nadu-based bank said in a press release.

Karur Vysya Bank said it had donated Rs 1 crore to the Tamil Nadu State Disaster Management Authority while it handed over oxygen concentrators and multi-parameter monitors to the Karur Medical College Hospital totalling to Rs 1.60 crore, the release said.

Babu stated that the bank was committed to give back to the society in a big way through the corporate social responsibility initiatives, the released added.

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IDBI Bank-led consortium seeks EoIs to sell exposure to IVRCL road asset

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In Q1FY22, IDBI Bank reported a 318% year-on-year jump in its net profit, aided by a recovery from the Kingfisher Airlines account.

A consortium of lenders led by IDBI Bank on Monday sought expressions of interest for acquiring its Rs 804-crore exposure in a road asset developed by IVRCL. The banks wish to sell IVRCL Chengapalli Tollways (ICTL) to asset reconstruction companies or other financial institutions in line with regulatory guidelines.

IVRCL was among the companies named by the Reserve Bank of India (RBI) in 2017 in its second list of bad assets to be resolved under the insolvency code. The company has since gone into liquidation. The road asset is being offered at a reserve price of `500 crore in an all-cash deal, implying a maximum haircut of 38%. The consortium has sanctioned loans worth Rs 862 crore to the asset. The other lenders in the consortium are Karur Vysya Bank, Union Bank of India, State Bank of India and Bank of Baroda.

Bidders interested in buying the asset will have to send in expressions of interest (EoIs) by September 9 and the last date for submission of bids is September 27. Thereafter, there will be an inter-se bidding among the top three bidders on September 28. “Once the deal is finalised, the assignment deed and other legal formalities will be completed in the shortest possible time as mutually agreed upon,” IDBI Bank said in a notice.

Recoveries from large bad assets have been an important factor behind some banks turning a profit in the June quarter. In Q1FY22, IDBI Bank reported a 318% year-on-year jump in its net profit, aided by a recovery from the Kingfisher Airlines account. The total recovery from the account stood at Rs 733 crore.

IDBI Bank MD & CEO Rakesh Sharma said in July that the bank will be able to reduce its gross non-performing asset (NPA) ratio by 4-5% through growth in the advances or the denominator. “Now the government has also come out with the National Asset Reconstruction Company Ltd. (NARCL) and we may transfer some accounts there as well. Once the NARCL becomes functional, some assets will be transferred and that would further reduce the gross NPA by another 5-6%,” said Sharma. The gross NPA ratio stood at 22.71% at the end of June.

The lender plans to transfer a total of Rs 11,000-12,000 crore of advances to the NARCL, of which live accounts will be to the tune of Rs 7,000-8,000 crore, with the rest being written-off accounts.

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Karur Vysya Bank reports marginal growth in Q1 net profit at Rs 109 crore

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The cost of deposits has improved by 84 basis points (bps) to 4.53% in the quarter as compared to 5.37% in the same period previous year, KVB said in a release.

Karur Vysya Bank (KVB) on Wednesday registered marginal growth in net profit at Rs 109 crore for the first quarter of FY22 as against Rs 106 crore in the corresponding quarter of the previous financial year.

The bank’s total income was slightly lower at Rs 1,596 crore in the quarter under review as compared to Rs 1,693 crore in the same period last year.Its net interest income improved 14% to Rs 638 crore as against Rs 562 crore while net interest margin (NIM) stood at 3.55%.

The cost of deposits has improved by 84 basis points (bps) to 4.53% in the quarter as compared to 5.37% in the same period previous year, KVB said in a release. The non-interest income (including treasury profit) dropped to Rs 220 crore in Q1FY22 as compared to Rs 317 crore in Q1FY21, when there was a higher treasury profit of Rs 178 crore earned, as compared to Rs 35 crore during the current period.

Commission- and fee-based income have improved by Rs 26 crore to Rs 147 crore from Rs 121 crore while operating expenses stood at Rs 429 crore as compared to Rs 405 crore. KVB said its total business was at Rs 1,16,713 crore, registering 7.4% growth. Credit portfolio grew 8% and gross advances stood at Rs 52,315 crore, up from Rs 48,617 crore. Improved credit off-take in retail and business segment as well as jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels aided credit growth.

Jewel loan portfolio registered growth of Rs 3,258 crore (32.8%) and was at Rs 13,206 crore. Total deposits grew Rs 4,333 crore (7%) to `64,398 crore, up from Rs 60,065 crore. Growth was routed through sustained improvement in CASA portfolio and retail-term deposits, it said. Gross NPA has declined to 7.97% as compared to 8.34% while net NPA inched up to 3.69% as against 3.44%. Provision coverage stood at 72.40%.

On the capital adequacy front, the bank said the Basel III CRAR was at 19.06% (with CET1 ratio of 17.04%), up from 18.14%.

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Karur Vysya Bank posts 24% growth in Q4 net

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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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Karur Vysya Bank profit jumps 133%

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Net interest margin stood at 3.29% and was almost flat compared to 3.33% a year ago.

Karur Vysya Bank (KVB) has reported a 133% increase in its profit for the third quarter ended December 31, 2020 to Rs 35 crore from Rs 15 crore during the same period last year. Net interest margin stood at 3.29% and was almost flat compared to 3.33% a year ago.

Non-interest income for the quarter, excluding treasury profit of Rs 54 crore, was at Rs 197 crore during the latest quarter, compared with Rs 215 crore a year ago (Treasury profit during Q3 of previous year was at Rs 45 crore).

Net NPA improved by 158 bps and dropped to 2.55% as on December 31, from 4.13% a year ago. In absolute terms, it got reduced by Rs 683 crore to Rs 1,263 crore from Rs 1,946 crore as on December 31, 2019. The provision coverage ratio stood at at 77.35%.

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