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Informist, Thursday, Oct. 17, 2024

 

--Karur Vysya Jul-Sept net profit INR 4.74 bln 
--Analysts saw Karur Vysya Jul-Sept net profit INR 4.53 bln 
--Karur Vysya Jul-Sept net profit INR 4.74 bln vs INR 3.78 bln year ago 
--Karur Vysya Jul-Sept total income INR 28.56 bln vs INR 23.36 bln year ago 
--Karur Vysya Jul-Sept provisions INR 1.80 bln vs INR 1.26 bln year ago 
--Karur Vysya Apr-Sept net profit INR 9.32 bln vs INR 7.37 bln year ago 
--Karur Vysya Apr-Sept total income INR 55.29 bln vs INR 45.52 bln year ago 
--Karur Vysya Bank gross NPA ratio 1.10% as on Sept. 30 vs 1.32% qtr ago 
--Karur Vysya Bank net NPA ratio 0.28% as on Sept. 30 vs 0.38% qtr ago 
--Karur Vysya Bank basel III capital adequacy ratio 16.28% as on Sept 30 
--Karur Vysya Bank provision coverage ratio 96.09% as on Sept 30
 

By Pratiksha

 

NEW DELHI – Karur Vysya Bank's net profit for the September quarter jumped over 25% on year to INR 4.74 billion, even though its provisions and contingencies rose sharply from a year ago, the lender's quarterly results released Thursday showed. According to the results, the Tamil Nadu-based bank's provisions and contingencies rose 42.3% on year to INR 1.80 billion in the reporting quarter. The bank's bottom-line was aided by a rise in total income and improvement in asset quality in the reporting quarter.

 

The net profit of Karur Vysya Bank was seen rising 19.7% on year to INR 4.53 billion for the September quarter, according to the average of estimates by six brokerages. At 1435 IST, shares of Karur Vysya Bank were 4.2% higher at INR 213.25 on the National Stock Exchange.

 

Floods in parts of South India have led to a sharp rise in provisions for southern-focused banks this year. In terms of asset quality, the bank's gross non-performing asset ratio declined to 1.10% as of Sept. 30, from 1.32% at the end of June, while the net non-performing asset ratio fell to 0.28% from 0.38% as of Jun. 30. The lender's provision coverage ratio rose to 96.09% as of Sept. 30.

 

The bank's total income jumped 22.3% on year to INR 28.56 billion in the reporting quarter on the back of a 39.3% jump in other income to INR 4.72 billion. The bank's net interest income--the difference between interest earned and expended--for the quarter rose 16% on year to INR 10.60 billion. Net interest income was seen rising 13.7% on year to INR 10.41 billion in the quarter, according to the average of estimates by the six brokerages.

 

Steady growth in loans also boosted the private lender's bottom line. The bank reported 14% on-year growth in gross advances to INR 802.99 billion as of Sept. 30. Within loans, commercial loans rose at the fastest pace, posting a year-on-year increase of 22% to INR 286.88 billion. Retail advances grew 21% to INR 196.85 billion, and agricultural loans were up 16% at INR 188.38 billion. Corporate loans, meanwhile, fell 9.0% to INR 130.88 billion as of Sept. 30. 

 

On the liabilities front, Karur Vysya Bank's deposits were up 15% at INR 958.39 billion as of Sept. 30. The largest chunk comprised term deposits, which rose 20% on year to INR 676.07 billion in the reporting quarter. The bank's current account savings account ratio, however, edged lower to 29% from 30% at the end of the previous quarter and 32% a year ago. The bank's net interest margin was 4.11% in the September quarter, down from 4.13% a quarter ago, but up 4 basis points from a year ago.  End

 

Edited by Rajeev Pai

 

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