Karur Vysya Bank today declared its highest ever quarterly profit over the last 18 quarters

January 31, 2022 team Business Comments Off on Karur Vysya Bank today declared its highest ever quarterly profit over the last 18 quarters

Picture - Mr. B. Ramesh Babu, MD & CEO, KVB

Highlights of business performance for the period ended 31.12.2021

  • Total business as of 31.12.2021 stands at Rs. 122,664 crore, registering a Y-o-Y growth of 7.4% (Rs. 8,462 crores) from Rs. 1,14,202 crore as on 31.12.2020. Total business stood at Rs. 1,16,098 crore as on 31.03.2021.
  • Total deposits grew by Rs. 4,782 crore (7.7%) to Rs. 66,871 crore, up from Rs. 62,089 crore as of 31.12.2020.
  • CASA share is up at 36% from 35% a year ago. CASA deposits have grown by 12.2% on a Y-o-Y basis to Rs. 24,128 crore as of 31.12.2021 (Rs. 21,500 crores a year ago).
  • Gross advances grew by 7.1% Y-o-Y (Rs. 3,680 crores) and stands at Rs. 55,793 crore as of 31.12.2021, up from Rs. 52,113 crore a year ago.
  • Improved off-take by retail and business segment clientele as well as a robust jewel loan portfolio aided the credit growth during this period. The growth was facilitated through digital processing and improved sourcing through various channels.
  • Jewel Loan portfolio registered a Y-o-Y growth of Rs. 1,649 crore (13.7%) and stands at Rs. 13,718 crore as of 31.12.2021.
  • As of 31.12.2021, Gross NPA has declined by 40 bps to 6.97% (Rs. 3,888 crores) as compared to 7.37% (Rs. 3,842 crores) a year ago. GNPA as of 31.03.2021 was Rs. 4,143 crores (7.85%).
  • Net NPA stands Rs. 1,356 crore i.e. 2.55% as on 31.12.2021. NNPA was at 3.41% (Rs. 1,719 crore) as on 31.03.2021.
  • Provision Coverage Ratio stands at 78.81% (77.35% a year ago).
  • Basel III CRAR stands at 18.79% (with a CET1 Ratio of 16.76%), up from 18.52% as of 31.12.2020.
  • Branch and ATM + Cash Recyclers network as on 31.12.2021 stands at 781 & 2,227 respectively.

Financial performance – Quarter ended 31st December 2021

  • Net profit for the quarter registered a substantial growth and stood at Rs. 185 crore up from Rs. 35 crore during Q3 of the previous year.
  • Operating profit for the quarter stood at Rs. 402 crore – up by Rs. 133 crores from Rs. 269 crore for Q3 of the previous year.
  • Net interest income for the quarter improved by 18% (Rs. 103 crores) to Rs. 687 crore for the current quarter vis-à-vis Rs. 584 crore for Q3 of FY 2020-21.
  • The net interest margin stands at 3.68%.
  • The cost of deposits has reduced by 58 bps to 4.22% compared to 4.80% during the previous period.
  • The yield on advances is at 8.42% (8.66% for Q3 of the previous year).
  • Non-interest income (excluding treasury profit) improved to Rs. 209 crore for the quarter as compared to Rs. 197 crore during the previous period
  • Operating expenses for the quarter were lower at Rs. 481 crore (Rs. 578 crore during Q3 of FY 2020-21).

Financial performance – nine months ended 31st December 2021

  • Net profit for the period rose by 80.4% (Rs. 205 crores) and stood at Rs. 460 crore from Rs. 255 crore during the corresponding period of the previous year.
  • Operating profit for the period up by Rs. 100 crore to Rs. 1,189 crore, from Rs. 1,089 crore for nine months of the previous year.
  • Net interest income for nine months increased by 15% to Rs. 2,005 crore vis-à-vis Rs. 1,747 crore for nine months of FY 2020-21.
  • Net interest margin up by 29 bps to 3.66%.
  • The cost of deposits has improved by 72 bps and stands at 4.35% as compared to 5.07% during the previous year.
  • The yield on advances is at 8.53% as compared to 9.07% during the nine months of the previous year.
  • Commission and fee income has improved by 16% (Rs. 61 crores) on a Y-o-Y basis to Rs. 452 crore from Rs. 391 crore during the previous year.
  • Operating expenses for the period was lower at Rs. 1,380 crore as compared to Rs. 1,407 crore during nine months of FY 2020-21.