Karur Vysya Bank Q4 & FY results for 21-22

Total business as on 31st March 2022 stands at Rs. 1,26,226 crore, registering a Y-o-Y growth of 8.72% i.e. Rs.1,26,226 crore from Rs. 1,16,098 crore as on 31.03.2021.

Karur Vysya Bank Q4 & FY results for 21-22
Mr. B. Ramesh Babu, MD & CEO, KVB

Highlights of business performance for the year ended 31.03.2022

  • Total business as on 31st March 2022 stands at Rs. 1,26,226 crore, registering a Y-o-Y growth of 8.72% i.e. Rs.1,26,226 crore from Rs. 1,16,098 crore as on 31.03.2021. Sequentially too, growth continues and was Rs. 3,562 crore (2.9%) during Q4 up from a level of Rs. 1,22,664 crore as on 31.12.2021.

  • Credit growth during the year was higher at 8.95% (Rs.4,730 crore) and gross advances reached a level of Rs.57,550 crore as on 31.03.2022, up from Rs. 52,820 crore a year ago. Q4 growth was Rs.1,757 crore (3.15%).

  • Credit growth resulted from improved off take in retail and business segment as well as higher growth witnessed in the jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels.

  • Jewel Loan portfolio registered growth of Rs.1,295 crore (10.08%) during the year and stands at Rs.14,147 crore as on 31.03.2022. 

  • Total deposits grew by Rs. 5,398 crore (8.53%) to Rs.68,676 crore up from Rs. 63,278 crore as of 31st March 2021. Growth was driven by sustained improvement CASA mix as well as retail term deposits. 

  • CASA share is up by 100 bps to 35%; CASA deposits are up by Rs.2,250 crore i.e.10.39% on Y-o-Y basis to Rs.23,904 crore as on 31st March 2022 growing from a level of Rs. 21,654 crore a year ago.  

  • Net NPA improved by 113 bps and dropped to 2.28% as on 31.03.2022 from 3.41% a year ago, backed by consistent follow-up and recovery measures. In absolute terms, it has reduced by Rs.458 crore to Rs.1,261 crore from Rs. 1,719 crore as on 31.03.2021. 

  • Provision Coverage Ratio stands at 80.27% (72.70% a year ago).

  • As at 31.03.2022, Gross NPA also has declined to 5.96% (Rs.3,431 crore as compared to Rs. 4,143 crore (7.85%) a year ago). 

  • Basel III CRAR stands at 19.46 % (with CET1 Ratio of 17.49%), up from 18.98% as on 31.03.2021.

  • Branch and ATM + Cash Recyclers network as on 31st March 2022 stands at 789 & 2223 respectively (corresponding position was 780 & 2,236 as on 31st March 2021).

Financial performance FY 2021-22

  • Net profit for the year grew by 87.47% to Rs.673 crore up from Rs. 359 crore during previous year.

  • Operating profit for the year was Rs.1,630 crore as compared to Rs. 1,292 crore for FY 2020-21. 

  • Net interest income for the year stood at Rs.2,715 crore as compared to Rs. 2,360 crore for FY 2020-21. 

  • Cost of deposits has reduced by 66 bps and stands at 4.30% as compared to 4.96% during the previous year.

  • Yield on advances stood at 8.47% as against 8.93% for the previous year.

  • Net interest margin stands at 3.69% marginally down by 29 bps from a year ago.

  • Non-interest income for the year, including treasury loss of Rs. 50 crore, is Rs.2,715 crore as compared to Rs. 2,360 crore a year ago. Treasury profit for FY 2020-21 was Rs. 217 crore.

  • Operating expenses for the year was lower at Rs.1,854 crore as compared to Rs. 1,987 crore during FY 2020-21; 

Financial performance Q4 – FY 2021-22

  • Net profit for the quarter rose by 104.8% to Rs.213 crore from Rs. 104 crore during Q4 of previous year.

  • Operating profit for the quarter stood at Rs.441 crore - rose by 118% from Rs. 202 crore for Q4 of the previous year.

  • Net interest income for the quarter is higher at Rs.710 crore for the current quarter vis-à-vis Rs. 613 crore for Q4 of FY 2020-21. 

  • Cost of deposits has improved by 51 bps and stands at 4.12% as compared to 4.63% during the previous year.

  • Yield on advances is at 8.28% (8.52% for Q4 of previous year)

  • Net interest margin stands at 3.79% (3.46% for Q4 of previous year)

  • Non-interest income for the quarter (excluding treasury loss of Rs. 28 crore) is Rs.205 crore during the current quarter as compared to Rs. 169 crore a year ago (Treasury profit during Q4 of previous year was Rs. 2 crore).

  • Operating expenses for the quarter was Rs.474 crore as compared to Rs. 579 crore during Q4 of FY 2020-21.