Karur Vysya Bank Q1 net doubles to Rs 229 cr, interest income up 17%

Operating profit for up 15% YoY, major improvement seen in bad loans

Tamil Nadu-based Karur Vysya Bank has posted a 110 per cent rise in net profit during the first quarter of the financial year ended in June 2022 to Rs 229 crore, from Rs 109 crore during the April-June period of 2021-22.

Operating profit for the quarter stood at Rs 475 crore, up 15 per cent from Rs 412 crore during Q1 of the previous financial year. Net interest income was up 17 per cent to Rs 746 crore from Rs 638 crore a year ago.

The bank’s gross NPA declined to 5.21 per cent (Rs 3,107 crore) from 7.97 per cent (Rs 4,167 crore) a year ago. Its net NPA was 1.91 per cent (Rs 1,098 crore) in Q1FY23 as against 3.69 per cent in Q1FY22 (Rs 1,845 crore).

The cost of deposits improved by 44 bps (basis points) to 4.09 per cent at the end of the quarter, from 4.53 per cent the previous year. Net interest margin was 3.82 per cent, up 27 bps from 3.55 per cent a year ago. Total deposits grew by 11 per cent to Rs 71,168 crore, from Rs 64,398 crore as of June 2021. CASA share was up by 118 bps to 36.42 per cent; CASA deposits were up 14.23 per cent YoY at Rs 25,916 crore (Rs 22,688 crore a year ago).

The bank’s yield on advances for the reporting quarter stood at 8.27 per cent, compared to 8.55 per cent during Q1 of the previous financial year.Operating expenses for the quarter rose to Rs 469 crore from Rs 429 crore. Cost-to-income ratio stands at 49.68 per cent as against 51.03 per cent a year ago.

Karur Vysya's total business as on June 30 was Rs 1.31 trillion, up 12.05 per cent YoY from Rs 1.17 trillion at the end of the April-June period in the last financial year. The bank’s credit portfolio grew by 14 per cent. Its gross advances stood at Rs 59,612 crore as of June 30, up from Rs. 52,315 crore a year ago.