KVB posts its highest-ever annual net profit at ₹1,106 cr in FY23


Karur Physya Bank It recorded its highest annual net profit and a significant improvement in asset quality for fiscal year 23.

The board of directors of the old private sector bank has recommended a dividend of Rs 2 per equity share at a par value of Rs 2 for the year ending 31st March 2023.

KVB recorded a 64 per cent increase in net profit at Rs.1,106 crore for the year ended 31st March 2023 (Rs.673 crore), supported by a strong increase in net interest and other income amid higher provisions.

The bank’s operating profit was ₹2,476 crore in FY23 (Rs.1,630 crore).

Net interest income rose 23.3 percent to 3,349 crore (Rs. 2,716 crores), while net interest margin reached 4.18 percent, up 46 basis points from 3.72 percent, according to a statement.

“We have consistently worked to achieve the highest ever annual net profit of INR 1,106 crore for 2022-23. Cost of credit has improved on the back of continued strong asset quality, with gross NPA and net NPA at 2.27 per cent and 0.74 per cent respectively, “Mold. Ramesh Babu, Managing Director and CEO, Karur Visya Bank.

Provisions and contingencies were higher at Rs.1,039 crore in FY23 (Rs.699 crore).

Asset quality

However, total NPA decreased by 2.27 per cent to Rs 1,458 crore during the March 2023 quarter as compared to 6.03 per cent a year earlier. GNPA was 2.7 percent as of December 31, 2022. Net NPA also declined to 0.74 percent in the fourth quarter of FY23 from 2.31 percent a year ago and 0.90 percent in the December 2022 quarter.

The provision coverage ratio was 92.14% as at March 31, 2023 (80.27%).

It grossed ₹1,40,806 crore (₹1,25,362 crore), an increase of 12 per cent. The yield on advances grew to 8.93 percent from 8.56 percent.

“Growth of the broad-based business coupled with the underlying revenue profile has driven the return on assets higher, which is currently 1.27 percent for the year and 1.50 percent for the quarter,” Babu said.

For the quarter ended 31st March 2023, KVB net profit increased by 59% at Rs.338 crore (Rs.213 crore). Operating profit was 68 per cent higher at ₹739 crore (₹441 crores).

Net interest income improved by 26 per cent at Rs.893 crore (Rs.710 crores), while non-interest income grew to Rs.401 crore (Rs.205 crores).