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Karur Vysya Bank has reported 28% surge in net profit at Rs 458.65 crore for the quarter ended June 2024 (Q1FY2025). The bank has posted healthy 14% growth in net interest income (NII), while the core fee income of the bank also improved 19% in Q1FY2025. The Net Interest Margin (NIM) of the bank has eased marginally to 4.13% in Q1FY2025 compared to 4.19% in the corresponding quarter of previous year.
On business front, the bank as has posted 15% growth in business with healthy 16% surge in loan book. The asset quality of the bank was stable in Q1FY2025. Bank has witnessed rise in the
credit to deposit ratio to 84.1% at end June 2024 from 83.0% at end June 2023. The CASA ratio of the bank has declined to 30.4% at end June 2024 from 32.9% at end June 2023.
Asset quality improves: The bank has continued
to improve asset quality in Q1FY2025.
The fresh slippages of
loans stood at Rs 174 crore in Q1FY2025 compared with 201 crore in previous
quarter and Rs 150 crore in the corresponding quarter last year.
The retail segment
contributed fresh slippages of Rs 68 crore, commercial Rs 90 crore, agriculture
Rs 8 crore and corporate Rs 8 crore in Q1FY2025.
The overall GNPA of the
bank stood at Rs 1025 crore end June 2024, of which retail segment stood at Rs
359 crore, commercial Rs 459 crore, agriculture Rs 81 crore and corporate Rs
126 crore end June 2024.
The recoveries and upgradations
of NPAs stood at Rs 90 crore and the write-off of loans was at Rs 101 crore in
Q1FY2025.
The standard
restructured loan book of the bank declined Rs 663 crore end June 2024 from Rs
715 crore end March 2024. The restructured loans in the retail segment stood at
Rs 317 crore commercial Rs 201 crore and corporate Rs 145 crore end June 2024.
Provision coverage ratio
improved to 94.91% at end June 2024 compared to 94.85% a quarter ago and 93.41%
a year ago.
The capital adequacy
ratio of the bank stood at 16.5% with Tier I ratio at 15.6% at end June 2024.
The risk weighted assets
of the bank has increased 21% YoY to Rs 62352 crore end June 2024,
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Asset Quality
Indicators: Karur Vysya Bank
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Jun/24
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Mar/24
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Dec/23
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Sep/23
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Jun/23
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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1024.53
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1041.64
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1151.86
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1219.08
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1329.65
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-2
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-23
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Net NPA (Rs Crore)
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293.66
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297.97
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305.27
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323.63
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390.02
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-1
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-25
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% Gross NPA
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1.32
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1.40
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1.58
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1.73
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1.99
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-8
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-67
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% Net NPA
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0.38
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0.40
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0.42
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0.47
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0.59
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-2
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-21
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% PCR
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94.91
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94.85
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94.81
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94.49
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93.41
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6
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150
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% CRAR - Basel III
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16.47
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16.67
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15.39
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16.84
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17.67
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-20
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-120
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% CRAR - Tier I -
Basel III
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15.58
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15.46
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13.87
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15.19
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15.96
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12
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-38
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Healthy business growth:
The business of the bank
has increased 15% YoY to Rs 170059 crore end June 2024, driven by 16% surge in
advances to Rs 77710 crore. Deposits moved up 14% to Rs 92349 crore at end June
2024.
CASA deposits ratio steady
qoq: The
CASA deposits of the bank increased 6% YoY to Rs 28042 crore at end June 2024. The
current account deposits increased 11% to Rs 8727 crore, while saving account
deposits rose 4% to Rs 19315 crore end June 2024. The CASA ratio declined to 30.4%
at end June 2024 compared to 32.9% at end June 2023, while remained steady from
30.4% a quarter ago. The term deposits have increased 19% to Rs 64307 crore end
June 2024.
Strong loan growth: Advances growth was
driven by retail loans rising 21% YoY to Rs 18840 crore at end June 2024, while
credit to agriculture increased 16% to Rs 18135 crore and MSME loan book jumped
22% to Rs 27083 crore at end June 2024. The corporate credit rose at slower
pace of 1% to Rs 13652 crore end June 2024.
Investment book of the bank increased 11% YoY to Rs 23007 crore at end June 2024.
The SLR book moved up 17% to Rs 20039 crore, while non SLR book declined 17% to
Rs 2968 crore at end June 2024. The AFS book rose 6% to Rs 5029 crore, while
HTM book increased 13% to Rs 17978 crore at end June 2024. The duration of the
AFS investment portfolio stood at 2.52 years end June 2024 compared with 1.44 years
at end June 2023.
Margins ease: The bank has showed 52 bps
YoY jump in cost of deposits to 5.48%, while yield on advances increased 41 bps
YoY to 10.10% in Q1FY2025. Thus, the NIM has declined 6 bps YoY, while NIM also
fell 6 bps qoq to 4.13%
Branch expansion: The bank has added 2 branches
and reduced 9 ATMs in Q1FY2025, taking overall tally to 840 branches and 2253 ATM`s
end June 2024. The employee count of the bank has increased to 9400 employees
end June 2024.
Book value of the bank stood at Rs 131.6
per share at end June 2024, while the adjusted book value (net of NNPA and 10%
of restructured advances) was Rs 127.1 per share at end June 2024.
Quarterly Performance
NII rises on healthy
loan growth: Bank has recorded 21% increase in the interest earned at Rs 2284.53
crore, while interest expenses increased 28% to Rs 1260.18 crore in Q1FY2025. NII
improved 14% to Rs 1024.35 crore in the quarter ended June 2024.
Healthy growth in the
core fee income: Bank has posted strong 19% growth in core fee income to Rs 242 crore,
while the recoveries and other income jumped 13% to Rs 146 crore and other
income also improved 13% to Rs 146 crore. The overall non-interest income increased
17% to Rs 388.35 crore in the quarter ended June 2024.
Stable expenses ratio: The operating expenses
of the bank increased 15% to Rs 666.85 crore, as other expenses moved up 27% to
Rs 333.39 crore, while employee expenses increased 5% to Rs 333.46 crore in
Q1FY2025. Cost to income ratio was nearly stable at 47.2% in Q1FY2025 compared
with 47.3% in Q1FY2024, helping the Operating Profit to increase 15% to Rs 745.85
crore.
Provisions and
contingencies decline: The bank has showed 17% decline in provisions to Rs 132.94 crore. The
loan loss provisions declined 21% to Rs 100 crore, while standard asset
provisions fell 8% to Rs 33 crore. PBT increased 25% to Rs 612.91 crore in
Q1FY2025.
Effective tax rate
declined to 25.2% in Q1FY2025 from 26.7% in Q1FY2024. Net Profit rose by 28% YoY
to Rs 458.65 crore during quarter ended June 2024.
Financial Performance
FY2024:
Bank has posted 45%
increase in net profit to Rs 1604.81 crore in the year ended March 2024
(FY2024). The net interest income increased 14% to Rs 3809.20 crore, while
non-interest income moved up 43% to Rs 1658.69 crore, pushing up net total
income by 21% to Rs 5467.89 crore in FY2024. The operating expenses increased
30% to Rs 2638.75 crore, while provision and contingencies dipped 30% to Rs
728.95 crore, allowing profit before tax to increase 46% to Rs 2100.19 crore in
FY2024. The cost-to-income ratio increased to 48.3% in FY2024 compared to 45.1%
in FY2023. An effective tax rate rose to 23.6% in FY2024 compared to 23.0% in
FY2023. The net profit has increased 45% to Rs 1604.81 crore in FY2024.
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Karur Vysya Bank: Results
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Particulars
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2406 (3)
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2306 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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2284.53
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1882.91
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21
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8203.94
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6516.55
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26
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Interest Expended
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1260.18
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985.84
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28
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4394.74
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3167.74
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39
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Net Interest Income
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1024.35
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897.07
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14
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3809.20
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3348.81
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14
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Other Income
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388.35
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333.16
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17
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1658.69
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1158.94
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43
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Net Total Income
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1412.70
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1230.23
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15
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5467.89
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4507.75
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21
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Operating Expenses
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666.85
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581.81
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15
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2638.75
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2031.96
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30
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Operating Profits
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745.85
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648.42
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15
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2829.14
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2475.79
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14
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Provisions &
Contingencies
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132.94
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159.42
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-17
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728.95
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1038.93
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-30
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Profit Before Tax
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612.91
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489.00
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25
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2100.19
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1436.86
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46
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EO
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0.00
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0.00
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-
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0.00
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0.00
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-
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PBT after EO
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612.91
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489.00
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25
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2100.19
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1436.86
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46
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Provision for tax
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154.26
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130.37
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18
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495.38
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330.77
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50
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PAT
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458.65
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358.63
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28
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1604.81
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1106.09
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45
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EPS*(Rs)
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22.8
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17.8
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19.9
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13.7
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Adj BV (Rs)
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127.1
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105.5
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120.2
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100.0
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* Annualized on current equity of
Rs 160.92 crore. Face Value: Rs 2, Figures in Rs crore
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Source: Capitaline Corporate
Database
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