Karur Vysya Bank Q3 profit surges 56% to Rs 289 cr on decline in bad loans

Karur Vysya Bank on Monday reported a 56 per cent jump in profit at Rs 289 crore for the quarter ended December 2022, helped by a rise in interest income and decline in bad loans.

Its net profit stood at Rs 185 crore in the same quarter of the preceding financial year.

Total income increased to Rs 2,013 crore in the quarter from Rs 1,600 crore in the year-ago period, the old generation private sector bank said in a regulatory filing.

At the same time, interest income rose to Rs 1,695 crore as against Rs 1,405 crore in the same quarter a year ago.

On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 2.66 per cent as compared to 6.97 per cent at the end of the third quarter of 2021-22.

Net NPAs too eased to 0.89 per cent from 2.55 per cent.

Despite a decline in bad loans, provision and contingencies increased more than two-fold to Rs 364 crore as against Rs 146 crore in the same period a year ago.

The capital adequacy ratio too declined to 17.86 per cent in December quarter as against 18.79 per cent in the same period a year ago.

The board also approved a proposal for re-appointment of B Ramesh Babu as the managing director and CEO of the bank for a further period of three years, with effect from July 29, 2023, it said.

The decision is subject to the approval of the Reserve Bank of India (RBI) and the shareholders of the bank in terms of the relevant provisions of the Companies Act, 2013, the Banking Regulation Act, 1949 and the guidelines issued by the RBI in this regard, it said.