Karur Vysya Bank (KVB) on Monday reported an increase of 43.5% in its net profit to Rs 165 crore for the second quarter of FY22, as against Rs 115 crore in the corresponding quarter of the previous year. Total income stood flat at Rs 1,561 crore, compared with Rs 1,577 crore.
KVB in a release said the net interest income for the quarter improved by 13.1% to Rs 680 crore, as against Rs 601 crore, while the net interest margin stood at 3.75%. Fee-based income (excluding treasury profit) was at Rs 144 crore, compared to Rs 119 crore during the year-ago period. Treasury profit was lower at Rs 16 crore as compared to Rs 120 crore during the same period last year.
Gross NPA declined by 55 bps to 7.38% (Rs 3,972 crore), compared with 7.93% (Rs 3,998 crore) a year ago. Net NPA stood at Rs 1,538 crore as against Rs 1,428 crore. The provision coverage ratio was at 76.28% (75.19% a year ago). The Basel III CRAR was at 18.82% (with CET1 ratio of 16.79%), up from 18.41%, it said.
The total business stood at Rs 1,19,260 crore, registering a Y-o-Y growth of 7% from Rs 1,11,530 crore. Gross advances grew 7% YoY to Rs 53,850 crore, from Rs 50,408 crore a year ago. Improved credit offtake in the retail and business segments as well as jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels, aided the credit growth, the release said. The jewel loan portfolio registered a Y-o-Y growth of Rs 2,319 crore (21%) and stood at Rs 13,460 crore.
Total deposits grew 7% to Rs 65,410 crore, up from Rs 61,122 crore. The growth was aided by sustained improvement in CASA portfolio and retail term deposits, it added.