Highlights:
Bank had crossed the historical milestone of the total business of ₹1.5 Trillion (₹ 1,50,000 cr).
Karur Vysya Bank (‘the Bank’) announced its financial results for the Quarter / half year ended September 30, 2023 today. The Bank continues its healthy performance in terms of business growth, profitability as well and asset quality.
BALANCE SHEET:
Balance sheet size as of September 30, 2023, was ₹ 98,434 crore as against ₹ 86,365 crore as of September 30, 2022, a growth of 13.97%.
Total business as on 30thSeptember2023 stands at ₹1,53,516crore, registering a Y-o-Y growth of 14.15% i.e. up by ₹19,032crore from ₹ 1,34,484 crore as on 30.09.2022.
Total deposits as on 30thSeptember 2023 stands at ₹83,068crore, registering a Y-o-Y growth of 13.17% i.e. up by ₹ 9,670 crore from ₹73,398 crore as on 30.09.2022.
Total advances as on 30thSeptember 2023 stands at ₹70,448crore, registering a Y-o-Y growth of 15.32% i.e. up by ₹ 9,362 crore from ₹61,086 crore as on 30.09.2022.
FINANCIAL PERFORMANCE – H1 FY 2024:
Net profit for the half-year registered a robust growth of 53.86% and stood at ₹737 crore from ₹479 crore during the corresponding half-year of the previous year.
PPOP for the half-year increased by 22.71% at ₹1,286 crores, as compared to ₹1,048 crore for the corresponding half-year of the previous year.
Net interest income increased by 15.63% to ₹1,812crore vis-à-vis ₹1,567 crore for the corresponding half-year of the previous year.
Net interest margin stands at 4.13% up by 15bps as compared to 3.98% for the corresponding half year of the previous year.
The cost of deposits has increased by 97 bps and stands at 5.07% as compared to 4.10% for the corresponding half-year of the previous year.
The yield on advances grew to 9.73% by 123bps as compared to 8.50% for the corresponding half-year of the previous year.
Commission and fee-based income has improved by 11.08% on a Y-o-Y basis to ₹401 crore from ₹361 crore for the corresponding half-year of the previous year.
Operating expenses for the quarter were ₹1,198 crore as compared to ₹960 crore during the corresponding half-year of the previous year.
The cost-to-income ratio stands at 48.23% (47.82% for H1 of the previous year).
CAPITAL ADEQUACY:
Capital Adequacy Ratio (CRAR) as per Basel III guidelines was at 16.84% as of September 30, 2023 (18.07% as of September 30, 2022) as against a regulatory requirement of 11.50%. Tier 1 was at 15.19% as of September 30, 2023, compared to 16.20% as of September 30, 2022. Risk-weighted Assets were at₹54,314crore as of September 30, 2023 (₹45,007 crore as of September 30, 2022).
ASSET QUALITY:
Gross non-performing assets (GNPA) have improved by 229bps and stand at 1.73%of gross advances as of September 30, 2023 (₹1,219 crores)and 4.02% as of September 30, 2022 (₹2,457 crores).
Net non-performing assets (NNPA) are below 1% and stand at0.47% of net advances as of September 30, 2023 (₹324crore), 1.38% as of September 30, 2022 (₹819 crore).
Provision Coverage Ratio (PCR) was at 94.49% as of September 30, 2023, as against 86.94% as of September 30, 2022.
NETWORK:
As of September 30, 2023, the Bank’s distribution network stands at824 branches and 1 Digital Banking Unit and2,244 ATMs / Cash Recyclers as against 792 branches and 2,238 ATMs / Cash Recyclers as of September 30, 2022.55% of our branches are in semi-urban and rural areas. In addition, we have business correspondents.
FINANCIAL PERFORMANCE – Q2 FY 2024 vs. Q2 FY2023:
Net profit for the quarter registered a robust growth of 51.20% and stood at ₹378 crore from ₹250 crore during corresponding quarter of the previous year.
PPOP for the quarter increased by 11.53% is at ₹638 crore, as compared to ₹572 crore for the corresponding quarter of the previous year.
Net interest income increased by 11.45% to ₹915crore vis-à-vis ₹821 crore for the corresponding quarter of the previous year.
Net interest margin stands at 4.07% as compared to 4.10% for the corresponding quarter of the previous year.
The cost of deposits has increased by 107 bps and stands at 5.16% as compared to 4.09% for the corresponding quarter of the previous year.
The yield on advances grew to 9.76% by 112bps as compared to 8.64% for the corresponding quarter of the previous year.
Commission and fee-based income has improved by 13.20% on a Y-o-Y basis to ₹196 crore from ₹173 crore for the corresponding quarter of the previous year.
Operating expenses for the quarter were ₹616 crore as compared to ₹491 crore during the corresponding quarter of the previous year.
The cost to income ratio stands at 49.14% (46.16% for Q2 of the previous year).
