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Updated on: Monday, November 08, 2021, 04:11 PM IST

Karur Vysya Bank Q2: Profit jumps 44% in Q2; stock zooms

Karur Vysya Bank had posted a net profit of Rs 115 crore in the same quarter a year ago. |

Karur Vysya Bank had posted a net profit of Rs 115 crore in the same quarter a year ago. |

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Karur Vysya Bank on Monday reported a 43.5 percent jump in its net profit to Rs 165 crore in the quarter ended in September 2021 on improved credit off-take in retail and business segments as well as a fall in bad loan provisions.

The South-based lender had posted a net profit of Rs 115 crore in the same quarter a year ago.

The bank's total income from operations during the July-September quarter of 2021-22, however, 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.

''Jewel loan portfolio registered a year-on-year growth of Rs 2,319 crore (21 percent) and stands at Rs 13,460 crore as on September 30, 2021,'' the bank said. The interest income remained flat Rs 1,397.95 crore during the quarter, as compared with Rs 1,394.70 crore in the year-ago period.

The asset quality of the bank showed improvement, as the gross non-performing assets (NPAs) came down to 7.38 percent of the gross advances as of September 30, 2021, from 7.93 percent by a year-ago period.

In value terms, 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 percent. In absolute value, the amount was at Rs 1,537.71 crore by the end of Q2 FY22, up from Rs 1,428.20 crore by September 2020.

The provisions for bad loans and contingencies for Q2 FY22 have lowered to Rs 164.15 crore, as against Rs 195.92 crore in Q2 FY21 and Rs 244.63 crore in Q1FY22.

KVB said its total business at the end-September 2021 stood at Rs 1,19,260 crore, registering a yearly growth of 7 percent.

Gross advances grew by 7 percent to Rs 53,850 crore. Total deposits also grew by 7 percent to Rs 65,410 crore.

''Growth was aided through sustained improvement in CASA (current account savings account) portfolio and retail term deposits,'' it said.

Provision Coverage Ratio (PCR) stands at 76.28 percent (75.19 percent a year ago).

Karur Vysya Bank shares closed at Rs 53, up 3.21 percent from the previous close, on BSE.

(With PTI inputs)

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Published on: Monday, November 08, 2021, 04:14 PM IST
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