Karur Vysya Bank sees 43 per cent jump in net profit to Rs 165 crore in September quarter

NEW DELHI:   Karur Vysya Bank (KVB) on Monday reported a 43.5% jump in its net profit to Rs 165 crore for quarter ended September as against a net profit of Rs 115 crore in the same quarter a year ago, on account of improved credit off-take and fall in bad loan provisions.

The bank’s total income from operations was down at Rs 1,561.05 crore as against Rs 1,577.45 crore in the same period of 2020-21, KVB said in a release.

Improved credit off-take in retail and business segments as well as jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels, aided the credit growth, it said.

The asset quality of the bank showed improvement, as the gross non-performing assets (NPAs) came down to 7.38% of the gross advances, from 7.93% by a year-ago period, while the gross NPAs of the bank stood at Rs 3,971.64 crore, down from Rs 3,998.43 crore.

However, the net NPA ratio was stable at 2.99%. In absolute value, the amount was at Rs 1,537.71 crore by the end of Q2FY22, up from Rs 1,428.20 crore by September 2020.

The provisions for bad loans and contingencies for Q2FY22 have lowered to Rs 164.15 crore, against Rs 195.92 crore in same quarter last year.

Gross advances grew by 7% to Rs 53,850 crore. Total deposits also grew by 7%t to Rs 65,410 crore. Provision Coverage Ratio (PCR) stood at 76.28% against 75.19% a year ago.