Karur Vysya Bank reports healthy growth in Q1FY24 financial results

Karur Vysya Bank has announced its Q1 FY 2024 financial results, demonstrating considerable business growth, profitability, and improved asset quality. The bank’s net profit surged by 56.77%, reaching ₹ 359 crore from ₹ 229 crore during the same period in FY 2023.

Pre-Provision Operating Profit (PPOP) for the quarter rose by 36.42%, reaching ₹ 648 crore, compared to ₹ 475 crore for the corresponding quarter of the previous year.

The bank’s net interest income experienced a 20.24% increase, amounting to ₹ 897 crore, while the net interest margin stood at 4.19%, a rise of 34 basis points compared to 3.85% for the same period last year. There was also an increase in the cost of deposits, up by 86 basis points to 4.96%, and the yield on advances grew to 9.69%.

Karur Vysya Bank‘s commission and fee-based income improved by 9.63% year-on-year to ₹ 205 crore, and operating expenses for the quarter totaled ₹ 581 crore. The cost-to-income ratio now stands at 47.29%, down from 49.68% in Q1 of the previous year.

In terms of capital adequacy, the Capital Adequacy Ratio (CRAR) as per Basel III guidelines was 17.67% as of June 30, 2023, compared to 18.95% as of June 30, 2022. Tier 1 was at 15.96% as of June 30, 2023, down from 17.02% as of June 30, 2022.

Karur Vysya Bank Q1 FY2024 financial performance displays solid profitability and asset quality. Photo courtesy of Christopher J. Fynn/Wikimedia Commons.

Notably, the bank’s asset quality also showed improvement, with gross non-performing assets (GNPA) decreasing to 1.99% of gross advances and net non-performing assets (NNPA) falling below 1%. The Provision Coverage Ratio (PCR) increased to 93.41% as at June 30, 2023, compared to 82.74% as at June 30, 2022.

The bank’s distribution network as of June 30, 2023, comprised 808 branches, one Digital Banking Unit, and 2,240 ATMs / Cash Recyclers, and 150 business correspondents. Balance sheet size was ₹ 94,607 crore, a growth of 12.83%, with total business standing at ₹ 1,47,671 crore, indicating a YoY growth of 13.72%.

Commenting on the results, Ramesh Babu B, Managing Director & CEO of Karur Vysya Bank, stated, “We have been able to continue to demonstrate our consistent performance in terms of Growth, Profitability and Asset Quality for the first quarter ended 30th June 2023. Our total business crossed ₹1,47,671 cr. The inclusive growth from all the business segments has helped us to reach a net profit of ₹ 359 cr for the quarter. We are always mindful of the trust, faith, and confidence that our customers and our investors have reposed on us. The momentum would be carried for the rest of the quarters of this fiscal.”