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Informist, Thursday, Jan. 23, 2025

 

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--Karur Vysya Bank Oct-Dec net profit INR 6.89 bln
--Analysts saw Karur Vysya Bank Oct-Dec net profit INR 5.68 bln
--Karur Vysya Bank Oct-Dec net profit INR 6.90 bln vs INR 4.96 bln yr ago 
--Karur Vysya Bk Oct-Dec total income INR 33.03 bln vs INR 29.53 bln yr ago
--Karur Vysya Bank Oct-Dec provisions INR 1.05 bln vs INR 1.47 bln yr ago
--Karur Vysya Bank gross NPA ratio 0.71% as on Dec 31 vs 0.76% qtr ago
--Karur Vysya Bank net NPA ratio 0.19% as on Dec 31, unch on qtr
--Karur Vysya Bank Basel III capital adequacy ratio 16.05% as on Dec 31 
--Karur Vysya Bank provision coverage ratio 96.56% as on Dec 31
--Karur Vysya Bank Apr-Dec net profit INR 17.85 bln vs INR 14.28 bln yr ago
--Karur Vysya Bk Apr-Dec total income INR 96.39 bln vs INR 84.82 bln yr ago
--Karur Vysya shrs recover sharply; at INR 270.60, up 2.6% vs dn 1.5?rlier

 

By Durgesh Nandan

 

MUMBAI – Karur Vysya Bank Ltd. reported a strong double-digit rise on year and on quarter in its net profit for the December quarter, primarily supported by lower provisions. Both the bottom line and the top line of the bank exceeded the Street's estimates by a wide margin.

 

After the earnings were announced, the lender's share price recovered sharply to end at INR 265.50, up 0.7%. The shares were down 1.5?rlier.

 

The bank's bottom line for the reporting quarter rose over 39% on year to INR 6.9 billion. This is the bank's highest on-year growth in net profit in eight quarters. Sequentially, the lender's net profit rose more than 20%. The bank's net profit for the quarter was expected to be INR 5.68 billion, according to the average of estimates from six brokerages.

 

The bank's total income rose to INR 33.03 billion, up nearly 12% on year. However, the total income was down 0.5% sequentially.

 

The provisions and contingencies of Karur Vysya Bank for the December quarter fell nearly 29% on year and nearly 62% on quarter to INR 1.05 billion, against INR 1.47 billion a year ago. This decline in provisions supported the bank's bottom line for the quarter.

 

The bank's other income for the reporting quarter rose over 9% on year to INR 5.09 billion. However, the other income declined nearly 1% sequentially. The net interest income--interest earned minus interest expended--for the December quarter rose 15% on year to INR 12.4 billion. The private bank's net interest margin during the reporting quarter was nearly 4%, up 22 basis points on quarter.

 

The bank reappointed B. Ramesh Babu as managing director and chief executive officer for two years. His present term ends Jul. 28.

 

The lender's gross non-performing asset ratio was 0.71% as on Dec. 31, down from 0.76% a quarter ago. The bank's net non-performing asset ratio was flat sequentially at 0.19% as of Dec. 31. The lender's Basel-III capital adequacy ratio was 16.05% as on Dec. 31, down marginally on quarter from 16.58% as of Sept. 30. The capital adequacy ratio as on Dec. 31, 2024, was 15.91%.

 

The cost of deposits for the bank declined in the December quarter to 5.47% from 5.66% a year ago. The cost of funds also fell to 5.47% from 5.66% in the year-ago quarter.

 

The bank's net profit for the nine months ended Dec. 31 rose 25% to INR 17.85 billion from INR 14.28 billion a year ago. The total income for the period rose more than 13% on year to INR 96.40 billion.  End

 

Edited by Rajeev Pai

 

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