Private sector lender Karur Vysya Bank Ltd. (KVB) standalone net profit for the quarter ended December rose by 56% to ₹289 crore due to increase in net interest income and improvement in asset quality.
During the quarter under review, total income rose by 37% to ₹1,206 crore, of which net interest income improved by 29% to ₹889 crore and non-interest income by ₹317 crore (₹196 crore). Net interest margin increased by 64 bps to 4.32%, it said in a statement.
Gross non-performing assets (GNPA) declined to 2.66% of gross advances (₹1,674 crore) against 6.97% (₹3,888 crore) in the year-ago period.
Net NPA was down to 0.89% from 2.55% of net advances at ₹550 crore. Provision coverage ratio increased to 90.87% from 78.8%.
Cost of deposits increased by 4 bps and stood at 4.26%, while yield on advances improved to 9.04% from 8.42%. Fee based income rose by ₹22 crore to ₹184 crore.
Total business rose by 13.4% to ₹1,39,062 crore, of which deposits accounted for ₹76,175 crore.
The bank had a Capital Adequacy Ratio of 17.86%.
On January 23, the board approved the proposal for re-appointment of B. Ramesh Babu as the managing director and CEO of the bank for a further period of three years, with effect from July 29, 2023.
