Tag: KVB

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