KVB posts 57% rise in Q1 net profit at ₹359 crore, asset quality continues to improve   

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Karur Vysya Bank reported strong double-digit growth in net profit and improvement in asset quality during the first quarter of the current financial year.

The old private sector bank reported a 57 per cent increase in net profit at Rs 359 crore for the quarter compared to Rs 229 crore in the year-ago quarter, according to a statement.

The bank’s operating profit increased to ₹648 crore (₹475 crore), an increase of 36 per cent.

Net interest income grew by 20 per cent to Rs.897 crore (Rs.746 crore). The net interest margin was 4.19 percent, up from 3.85 percent a year earlier. Non-interest income grew by 67 per cent to Rs. 333 crore (Rs. 199 crore).

Operating expenses were higher at ₹581 crore (₹470 crore). Total expenditure (excluding provisions and contingencies) was Rs.1,568 crore (Rs.1,197 crore). NPA saving was lower at ₹101 crore (₹140 crore). Slips were also lower at ₹30 crore (₹61 crores).

Total NPA decreased significantly to 1.99 percent during the quarter compared to 5.28 percent a year ago. The NPA rate was 2.27 percent on March 31, 2023. Net NPA decreased to 0.59 percent, compared to 1.93 percent in the year-ago quarter and 0.74 percent in the March 2023 quarter.

Total business

“We have been able to continue to show our consistent performance in terms of growth, profitability and asset quality for the first quarter ended 30th June 2023. Our total turnover exceeded INR 1,47,671 crore. Building momentum for the rest of the quarters of this fiscal year.”

Total deposits grew by 14% to ₹80,715 crore as compared to ₹70,961 crore a year earlier. CASA’s share fell to 33 percent from 37 percent a year earlier. CASA deposits grew marginally to ₹26,549 crore (25,916 crores a year earlier).

Total advances also increased by 14 per cent year-on-year to Rs.66,956 crore as compared to Rs.58,890 crore a year earlier. Progress in Agriculture, Retail (Personal Banking), Commercial and Corporate sectors grew by 18% (at Rs. 15,646 crores), 18% (at Rs. 15,644 crores), 22% (at Rs. 22,677 crores) and 7% ( 14,671 crore) and 7% (Rs. 14,671 crore), respectively.

The Reserve Bank of India has agreed to re-appoint P. Ramesh Babu, Managing Director and Chief Executive Officer of the bank, for a second term of three years from 29 July 2023.