Earnings Review
Robust YoY gain in other income boosts Karur Vysya Bank PAT
This story was originally published at 17:53 IST on 24 July 2025
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--Karur Vysya Bank Apr-Jun net profit INR 5.21 bln vs INR 4.59 bln year ago
--Analysts saw Karur Vysya Bank Apr-Jun net profit INR 4.91 bln
--Karur Vysya Bk Apr-Jun total income INR 30.16 bln vs INR 26.73 bln yr ago
--Karur Vysya Bank board approves 1-for-5 bonus share issue
--Karur Vysya Bank Apr-Jun provisions INR 1.18 bln vs INR 1.33 bln year ago
--Karur Vysya Bank gross NPA ratio 0.66% as on Jun 30 vs 0.76% qtr ago
--Karur Vysya Bank net NPA ratio 0.19% as on Jun 30 vs 0.20% qtr ago
--Karur Vysya Bank Basel III capital adequacy ratio 17.36% as on Jun 30
--Karur Vysya Bank provision coverage ratio 96.76% as on Jun 30
By Sourabh Kumar
MUMBAI – Karur Vysya Bank Ltd.'s net profit rose on year in the June quarter and beat analysts' estimate owing to a robust year-on-year increase in the bank's other income and a fall in provisions. On a quarterly basis, the private-sector bank's bottom line rose more slowly because of a sequential fall in other income. The bank's board approved the issue of bonus shares in the ratio of one share for every five held, and chose Aug. 26 as the record date.
The Tamil Nadu-based bank's net profit for the June quarter rose nearly 14% on year to INR 5.21 billion. Sequentially, the net profit was up just a little over 1%. The bank's other income increased nearly 16% on year to INR 4.47 billion. However, it was down around 12% from the previous quarter.
A decline in the bank's provisions also supported the net profit. The provisions and contingencies of Karur Vysya Bank fell around 11% on year and nearly 27% on quarter to INR 1.18 billion in the June quarter. The bank's total income for the quarter rose 12.8% on year to INR 30.16 billion but fell 0.3% on quarter. Its interest income was up 12.3% on year to INR 25.69 billion.
The total expenses of the bank rose 14.7% on year and 0.9% on quarter to INR 22.10 billion. In terms of asset quality, Karur Vysya Bank's gross non-performing asset ratio improved to 0.66% as of Jun. 30 from 0.76% at the end of the previous quarter and 1.32% a year ago. The net non-performing asset ratio was 0.19% as of Jun. 30, against 0.20% as of Mar. 31 and 0.38% a year ago.
The bank's gross non-performing assets fell around 42% on year and 7.7% on quarter to INR 5.93 billion in Apr-Jun. The net non-performing assets of the bank fell 42% on year but rose 2.4% on quarter to INR 1.70 billion in Apr-Jun. The bank's Basel-III capital adequacy ratio was 17.36% as of Jun. 30, down from 18.17% a quarter ago but up from 16.47% a year ago.
The bank detailed its earnings during market hours Thursday. Shares of Karur Vysya Bank closed slightly lower at INR 270.70 on the National Stock Exchange.
The bank's net interest income rose a modest 5% on year to INR 10.80 billion in the June quarter. Sequentially, it was down 1%. It was lower than analysts' estimate of a 6.6% rise on year to INR 10.92 billion. Karur Vysya Bank's net interest margin fell 27 basis points on year and 19 bps on quarter to 3.86% in Apr-Jun. The bank's provision coverage ratio was 96.76% as of Jun. 30.
The bank made provisions of INR 4.21 billion for non-performing assets in the June quarter, lower than INR 4.74 billion in the preceding quarter. The bank's slippage ratio rose to 0.84% in the June quarter from the previous quarter's 0.57%. Slippages in the June quarter were INR 50.00 million, down substantially from last year's INR 170.00 million. The bank's credit cost fell to 0.54% in the June quarter from 0.71% in the March quarter.
The cost of funds in the June quarter was 5.78%, up 3 bps on quarter and 29 bps on year. The cost of deposits was 5.77% in the June quarter, up from the previous quarter's 5.74% and last year's 5.48%. Yield on advances was 10% in Apr-Jun, down from 10.21% in Jan-Mar. The cost-to-income ratio of the bank was 47.24% in the June quarter, down from 47.77% in the March quarter.
Karur Vysya Bank's gross advances grew 15% on year and 6% on quarter to INR 893.74 billion as of Jun. 30. Its total deposits rose 15% on year and 4% on quarter to INR 1.07 trillion as of Jun. 30. The current account savings account deposits of the bank amounted to INR 293.06 billion as of Jun. 30, rising 5% on year and on quarter. The current account savings account deposit ratio of the bank was 27.48% as of Jun. 30, down 289 bps from last year.
The size of the bank's retail, agricultural, and micro, small, and medium enterprises portfolio increased 20% on year and 6% on quarter to INR 765.52 billion as of Jun. 30. Its corporate loan portfolio declined 6% on year to INR 128.12 billion as of Jun. 30. End
Edited by Rajeev Pai
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