Karur Vysya Bank Q4 net profit up 40% at Rs 83.7 crore

Karur Vysya Bank on Wednesday reported 39.5 percent jump in net profit at Rs 83.70 crore for the quarter ended March 2020 on higher income from other sources, even as provisioning went up substantially.

The private sector lender had posted a net profit of Rs 60.02 crore during the corresponding January-March quarter period of preceding fiscal year 2018-19.

The bank's provisioning for bad loans and contingencies during March quarter of FY20 were raised to Rs 429.27 crore as against Rs 352.34 crore in the year-ago period, Karur Vysya Bank said in a regulatory filing.

Income during the quarter under review rose to Rs 1,803.15 crore from Rs 1,746.04 crore in Q4 of 2018-19.

Even as interest income fell to Rs 1,456.16 crore in March quarter from Rs 1,473.59 crore a year ago, other income rose to Rs 346.99 crore from Rs 272.45 crore.

On the asset front, gross non-performing assets (NPAs) or bad loans of the bank remained elevated at 8.68 percent (Rs 4,212.77 crore) of gross advances as of March 31, 2020.

Gross NPAs stood at 8.79 percent (Rs 4,449.57 crore) of gross advances at the end of March 2019.

Net NPAs, however, improved to 3.92 percent (Rs 1,808.65 crore) from 4.98 percent (Rs 2,420.34 crore) a year ago.

For fiscal year 2019-20, Karur Vysya Bank's net profit rose 11.5 percent to Rs 235.02 crore from Rs 210.87 crore in 2018-19.

Income during the year increased 5.4 percent to Rs 7,144.60 crore from Rs 6,778.59 crore in 2018-19.

The lender said it has exercised the option of lower tax system brought in by the government in October last year, and accordingly provision for income tax for quarter and year ended March 2020 and remeasurement of deferred tax liability and assets have been made.

"Deferred tax assets (DTA) of Rs 45.95 crore has been recognised on provision for standard assets during the quarter ended March 31, 2020, which was hitherto not recognised by bank," it said.