Karur Vysya Bank’s net profit dipped by 25% at Rs 63 crore in the July-September quarter, as against Rs 84 crore in the same period last year, due to higher provisioning for bad loans despite improvement seen in asset quality.
In September quarter, the bank increased provisioning for bad loans by 71% at Rs 365 crore as against Rs 231 crore in same quarter last year.
During the September quarter, gross non-performing assets (NPA) in absolute terms lowered to Rs 4,391 crore, compared to Rs 4,511 crore in the previous quarter. Gross NPAs as a percentage of total loans improved to 8.89% from 9.17% during the previous quarter while the net NPA ratio also decreased from 4.94% to 4.50% on quarterly basis.
In July-September, the lender’s operating profit went up 19% at Rs 431 crore as against Rs 361 crore in the previous year. A marginal increase is seen in the bank’s net interest income (NII) by Rs 17 crore compared to last quarter.
The bank’s net profit was dragged by provisioning gone up by 71% compared to last year.
Total advances grew by Rs 1,247 crore at Rs 49,388 crore in this September quarter, from Rs 48,141 crore reported last year. During the same period, total deposits increased by Rs 3,951 crore (7%) from Rs 58,262 crore to Rs 62,213 crore.
The private lender’s CASA deposits stood at Rs 18,522 crore with a share of 30%, the bank’s net interest margin (NIM) stood at 3.46%. Provision Coverage Ratio of the bank stood at 61.82%.
Total Capital Adequacy Ratio (CAR) as per Basel III guidelines stood at 15.99% on September 30, 2019, as against regulatory requirement of 10.9%.
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