Tamil Nadu-based Karur Vysya Bank on Thursday reported a 52 per cent rise in net profit of Rs 250 crore for the second quarter of this financial year, compared to Rs 165 crore in the same period in FY22.
The operating profit for the quarter was Rs 572 crore as compared to Rs 375 crore during the Q2 of the previous financial year. Its net interest income for the quarter was also seen up by 21 per cent to Rs 821 crore for the current quarter as against Rs 680 crore for Q2 of previous year.
On September 30 this year, the bank’s gross NPA declined to 3.97 per cent (Rs 2,457 crore) as compared to 7.38 per cent (Rs 3,972 crore) a year ago. During the period under review, its net NPA stood at 1.36 per cent (Rs 819 crore) as against 2.99 per cent a year ago (Rs 1,538 crore).
Cost of deposits has improved by 24 basis points (bps) and stood at 4.08 per cent as compared to 4.32 per cent during the previous year. Net interest margin was seen at 4.07 per cent up 33 bps from 3.74 per cent a year ago.
Total deposits grew by Rs 8,204 crore (13 per cent) to Rs 73,614 crore during the current quarter, up from Rs 65,410 crore. CASA portfolio and retail term deposits were growth drivers. CASA deposits were also up at Rs 25,913 crore, posting a growth of 12 per cent on a year-on-year basis (Rs. 23,160 crore a year ago). In the July-September quarter, the bank’s yield on advances was at 8.55 per cent compared to 8.62 per cent for Q2 of previous year. Operating expenses for the quarter was Rs. 491 crore as compared to Rs 470 crore during Q2 of previous year. Its cost to income ratio stood at 46.16 per cent (55.57 per cent for Q2 of previous year).
Total business as on September 30 was at Rs. 1,35,460 crore, registering a growth of 14 per cent up from Rs 1,19,260 crore as on September 2021. KVB’s credit portfolio grew by 15 per cent year-on-year to Rs 7,996 crore and gross advances also increased to Rs. 61,846 crore, up from Rs 53,850 crore a year ago.