Karur Vysya Bank Q1 profit jumps 45% to Rs 105.5 crore as bad loans decline

Karur Vysya Bank (KVB) on Thursday recorded a 45 per cent jump in net profit at Rs 105.50 crore in the first quarter ended June of the current fiscal on fall in bad loans. The private sector bank had posted a net profit of Rs 72.92 crore in the corresponding quarter of the previous fiscal year ended March 2020.

Total income of the bank fell to Rs 1,693.23 crore during the April-June period of 2020-21. It was Rs 1,762.37 crore in the same period of 2019-20, KVB said in a regulatory filing.

The bank’s retail banking income declined to Rs 929.80 crore during the quarter under consideration from Rs 981.33 crore in the year-ago period. The interest income was lower at Rs 1,376.10 crore as against Rs 1,492.53 crore.

Asset quality of Karur Vysya Bank has improved, with gross non-performing assets (NPAs) falling to 8.34 per cent of gross advances as on June 30, 2020, from 9.17 per cent a year ago.

In value terms, gross NPAs fell to Rs 4,055.66 crore from Rs 4,510.83 crore. Net NPAs or bad loans also reduced to 3.44 per cent (Rs 1,585.23 crore) from 4.94 per cent (Rs 2,321.77 crore) a year ago.

The provisions for bad loans and contingencies is Rs 337.57 crore which is slightly higher than Rs 329.97 crore a year ago. Capital adequacy ratio of the Karur Vysya Bank improved to 18.14 per cent at the end of June 2020 from 15.99 per cent a year ago, it said.

The bank said the measures taken by the government to contain coronavirus pandemic has led to a slowdown in economic activities, and these are likely to impact its operations and results.

Shares of Karur Vysya Bank on Thursday closed 10.97 per cent higher at Rs 34.40 on the BSE.