Karur Vysya Bank Q3 results for FY 2022-23

• Total Business up by 13.4% YOY and 3% QOQ
• Deposits up by 13.9%. and 3% QOQ
• Loan Book  grew at 16% YOY and sequentially by 3%, without considering technical write off.  
• CASA grew 6.9% YOY, CASA ratio stood at 33.9%. 
• PPOP up by 46.1% YOY, 72% QOQ.
• NIM at 4.32%, up by 64 bps QOQ and 4.08% up 42 bps YOY and 
• Other Income up by 62% QOQ and 34.4% YOY  
• Cost to Income Ratio for the quarter it is 42.9% and stood at 46.0% YTD  
• ROA at 1.32% for the quarter and 1.19% YTD, 
• ROE at 14.04% for the quarter and 12.43% YTD (annualised). 
• GNPA at 2.66%, NNPA at 0.89%. 
• Capital adequacy ratio (CRAR) stood at 17.86% with CET 1 ratio of 16%.

NEW DELHI- Karur Vysya Bank (‘the Bank’) announced its financial results for the Quarter / Nine Months ended December 31, 2022 today. The Bank continues its healthy performance in terms of profitability as well as asset quality.

BALANCE SHEET:
Balance sheet size as of December 31, 2022 was Rs. 89,013 crore as against Rs.  77,612 crore as of December 31, 2021, a growth of 14.7%.

Total business as on 31st December 2022 stands at Rs. 1,39,062 crore, registering a Y-o-Y growth of 13.4% i.e. up by Rs.  16,398 crore from Rs.  1,22,664 crore as on 31.12.2021. 

FINANCIAL PERFORMANCE – NINE MONTHS:

Net profit for the period registered a robust growth of 67% and stood at Rs. 768 crore from Rs. 460 crore during corresponding period of previous year.

PPOP for the period is at Rs. 1,737 crore, as compared to Rs. 1,189 crore for corresponding period of the previous year.

Net interest income for the nine months increased by 22.5% to Rs.  2,456 crore vis-à-vis Rs. 2,005 crore for corresponding period of FY 2021-22. 

Net interest margin stands at 4.08% up by 42 bps as compared to 3.66% during the corresponding period of the previous year.

Cost of deposits has improved by 21 bps and stands at 4.14% as compared to 4.35% during the corresponding period of previous year.

Yield on advances grew to 8.63% by 10 bps as compared to 8.53% during the corresponding period of the previous year.

Commission and fee based income has improved by 20.6% on Y-o-Y basis to Rs.  545 crore from Rs. 452 crore for corresponding period of the previous year.

Operating expenses for the period was Rs.  1,477 crore as compared to Rs.  1,380 crore during the corresponding period of FY 2021-22.

CAPITAL ADEQUACY:

Capital Adequacy Ratio (CRAR) as per Basel III guidelines was at 17.86% as on December 31, 2022 (18.79% as on December 31, 2021) as against a regulatory requirement of 11.50%. Tier 1 was at 16% as of December 31, 2022 compared to 16.76% as of December 31, 2021. Risk-weighted Assets were at Rs.  45,616 crore (as against Rs. 40,074 crore as at December 31, 2021). 

ASSET QUALITY:

Gross non-performing assets (GNPA) has improved by 431 bps and stands at 2.66% of gross advances as on December 31, 2022 (Rs.  1,674 crore) and 6.97% as on December 31, 2021 (Rs.  3,888 crore). 

Net non-performing assets (NNPA) is below 1% and stands at 0.89% of net advances as on December 31, 2022 (Rs. 550 crore), 2.55% as on December 31, 2021 (Rs.  1,356 crore).

Provision Coverage Ratio (PCR) was at 90.9% as at December 31, 2022, as against 78.8% as at December 31, 2021. 

NETWORK:

As of December 31, 2022, the Bank’s distribution network stands at 792 branches and 2,233 ATMs / Cash Recyclers as against 781 branches and 2,227 ATMs / Cash Recyclers as of December 31, 2021. 54% of our branches are in semi-urban and rural areas. In addition, we have 145 business correspondents.

Q3 FY 2023 vs. Q3 FY 2022:

Net profit for the quarter grew by 56.2% and stood at Rs. 289 crore from Rs. 185 crore during Q3 of previous year.
Operating profit for the quarter was Rs. 689 crore as compared to Rs. 401 crore for Q3 of previous year.
Net interest income for the quarter improved by 29.4% (Rs. 203 crore) to Rs.  889 crore for the current quarter vis-à-vis Rs. 686 crore for Q3 of previous year. 
Net interest margin stands at 4.32% up 64 bps from 3.68% a year ago.
Cost of deposits has increased by 4 bps and stands at 4.26% as compared to 4.22% during the previous year.
Yield on advances is at 9.04% (8.42% for Q3 of previous year).
Non-interest income for the quarter is Rs 317 crore as compared to Rs 196 crore a year ago. 
Fee based income has improved by Rs 22 crore and stood at Rs. 184 crore from Rs162 crore during the previous year.
Operating expenses for the quarter was Rs 517 crore as compared to Rs 481 crore during Q3 of previous year. 
Cost to income ratio stands at 42.9% (54.5% for Q3 of previous year).