Private sector lender Karur Vysya Bank (KVB) posted a 41% increase in its March quarter net profit to ₹725 crore, up from ₹513 crore in the corresponding period a year ago due to improved asset quality and increase in interest income.
KVB’s net interest income increased by 25% to ₹1,359 crore from ₹1,089 crore. Net interest margin grew to 4.25% from 4.05%.
NPAs below 1%
Gross non-performing assets declined by one basis point to 0.75%, while net non-performing assets also contracted by one basis point to 0.19%.
The bank capital adequacy ratio improved to 18.76% from 18.17%. Slippages ratio dropped to 0.75% from 1.48%. Provision coverage ratio contracted to 96.45% from 96.81.
Total business & dividend payout
The bank also saw total business grow by 15% year-on-year to ₹2,14,420 crore; deposits rose by 13% to ₹1,15,666 crore, of which CASA deposits were ₹31,122 crore.
Loan book grew at 17% to ₹98,754 crore. Corporate sector advances accounted for ₹34,279 crore and Retail, Agriculture and MSME (RAM) sector advances ₹64,475 crore. The split between corporate and RAM was in the ratio of 65:35. KVB’s risk-weighted assets were at ₹75,697 crore against ₹66,261 crore.
Karur Vysya Bank Managing Director & CEO, Ramesh Babu B said the bank continued its strong performance trajectory, guided by growth, profitability, and asset quality.
The board recommended a dividend of ₹2.60 per share.