Karur Vysya Bank Falls 20% After Q3 Asset Quality Deteriorates

Shares of Karur Vysya Bank fell as much as 20 percent—the most in nearly 15 years—to Rs 63.20 on the National Stock Exchange after the lender's asset quality worsened in the quarter ended December.

The company’s gross non-performing assets in percentage terms rose to 8.49 percent for the three months to December from 5.94 percent clocked in the year-ago period, according to its stock exchange filing.

“The NPAs were higher in the third quarter on account of IL&FS exposure and due to one of the watchlist items that we had given in November 2017,” Karur Vysya Bank's Managing Director and Chief Executive Officer PR Seshadri told BloombergQuint. “Our aim is to build a balance sheet where NPA accretion is approximately 1.5 percent.”

Key Earnings Highlights (Q3, YoY)

• Net profit down 70 percent to Rs 21.20 crore.
• Net interest income up 3.4 percent to Rs 580.83 crore.
• Net NPA at 4.99 percent versus 3.88 percent.

Watch the entire interview here