Comments
Karur Vysya Bank (KVB) reported a 25 per cent increase in net profit for the second quarter of the current fiscal at ₹473 crore, up from ₹378 crore in the corresponding period last year. The profit growth was driven by higher net interest income and improved asset quality.
The bank’s operating profit surged 28 per cent, reaching ₹816 crore, compared to ₹638 crore in Q2 of the previous fiscal year. Net interest income (NII) also saw a significant boost, increasing by 16 per cent to ₹1,060 crore, up from ₹915 crore in the year-ago quarter. The net interest margin (NIM) expanded slightly to 4.11 per cent, compared to 4.07 per cent a year earlier. Non-interest income also increased sharply, rising to ₹472 crore from ₹339 crore in the same quarter last year.
Total provisions were higher at ₹180 crore for Q2 FY25 (₹127 crore in Q2FY24).
The bank’s asset quality continued to improve, with its gross non-performing assets (NPA) ratio declining to 1.10 per cent in the September 2024 quarter, compared to 1.73 per cent a year ago. Net NPA also improved, falling to 0.28 per cent from 0.47 per cent over the same period.
Focus on growth
Ramesh Babu B, Managing Director & CEO of Karur Vysya Bank, said, “We have achieved another strong quarter of performance, driven by our focus on growth, profitability, and asset quality. It is particularly encouraging to see inclusive growth across our RAM (Retail, Agriculture, and MSME) verticals, continuing the momentum from the first quarter.”
The bank’s total business crossed ₹1,76,138 crore, with inclusive growth from all business segments contributing to a net profit of ₹932 crore for the first half of FY25, added Ramesh Babu.
Total deposits increased 15 per cent year-on-year, reaching ₹95,839 crore as of September 30, 2024, compared to ₹83,068 crore in the same period last year. The share of CASA (Current Account Savings Account) deposits declined to 29 per cent, from 32 per cent a year ago. However, CASA deposits grew 5 per cent to ₹28,232 crore, up from ₹26,794 crore a year ago.
Gross advances also saw healthy growth, rising 14 per cent year-on-year to ₹80,299 crore, compared to ₹70,448 crore in the same quarter last year.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.