Karur Vysya Bank Q1 FY'23: Net profit grew by 110% at Rs. 229 cr

Chennai: Karur Vysya Bank announced its Q1 FY 2022-23 results today. The Bank has delivered a strong performance in terms of business growth, which has grown 12% YoY as well as a commendable 110% growth in Net Profit. Reduction in NPA, improved credit off-take, and stable NIM has resulted in improved profitability.

Highlights of business performance

Total business as on 30th June 2022 stands at Rs. 1,30,780 crore, registering a Y-o-Y growth of 12.05% i.e. up Rs. 14,067 crores from Rs. 1,16,713 crore as on 30.06.2021. The business has grown by Rs. 4,554 crores during Q1, from a level of Rs. 1,26,226 crore as on 31.03.2022.

The credit portfolio grew by ~14% Y-o-Y (Rs. 7,297 crores) and gross advances stand at Rs. 59,612 crores as on 30.06.2022, up from Rs. 52,315 crores a year ago. 

Credit off-take continues to improve both Y-o-Y as well as Q-o-Q terms aiding the growth of advanced portfolio. 

Jewel Loan portfolio registered a Y-o-Y growth of Rs. 1,667 crore (~13%) and stands at Rs. 14,873 crore as on 30.06.2022 (up from Rs. 13,206 crore a year ago). 

Total deposits grew by Rs. 6,770 crore (~11%) to Rs. 71,168 crore, up from Rs. 64,398 crore as of 30.06.2021. CASA portfolio and retail term deposits were growth drivers. 

CASA share is up by 118 bps to 36.42%; CASA deposits are up at Rs. 25,916 crore i.e. a growth of 14.23% on Y-o-Y basis (Rs. 22,688 crore a year ago). 

Basel III CRAR stands at 19.21% (with CET1 Ratio of 17.25%), up from 19.06% as on 30.06.2021.

As at 30.06.2022, Gross NPA has declined to 5.21% (Rs. 3,107 crore) as compared to 7.97% (Rs. 4,167 crore) a year ago. GNPA as on 31.03.2022 was Rs. 3,431 crore (5.96%). 

Net NPA stands at 1.91% (Rs. 1,098 crore) as on 30.06.2022 (3.69% a year ago - Rs. 1,845 crore).

Provision Coverage Ratio stands at 82.74% (72.40% a year ago).

Branch and ATM + Cash Recyclers network as on 30.06.2022 stands at 789 & 2,237 respectively (corresponding position was 781 & 2,251 as on 30.06.2021).

Financial performance Q1 FY 2022-23

Net profit for the quarter grew by 110% and stood at Rs. 229 crores from Rs. 109 crores during Q1 of the previous year. 

Operating profit for the quarter was Rs. 475 crore as compared to Rs. 412 crores.

Net interest income for the quarter improved by ~17% (Rs. 108 crores) to Rs. 746 crores for the current quarter vis-à-vis Rs. 638 crores for Q1 of the previous year. 

Net interest margin stands at 3.82% up 27 bps from 3.55% a year ago.

The cost of deposits has improved by 44 bps and stands at 4.09% as compared to 4.53% during the previous year.

The yield on advances is at 8.27% (8.55% for Q1 of the previous year).

Non-interest income for the quarter is Rs. 199 crores during current quarter as compared to Rs. 203 crores a year ago. 

Fee based income has improved by Rs. 40 crores on a Y-o-Y basis to Rs. 187 crores from Rs. 147 crores during the previous year.

Operating expenses for the quarter was Rs. 469 crore as compared to Rs. 429 crores during Q1 of the previous year. 

The cost-to-income ratio stands at 49.68% (51.03% for Q1 of the previous year).