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Karur Vysya Bank Reports 44% Jump In Net Profit To Rs 165 Crore In Q2

The bank's total income from operations during the July-September quarter of 2021-22, however, was down at Rs 1,561.05 crore as against Rs 1,577.45 crore in the same period of 2020-21

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Private lender Karur Vysya Bank (KVB) on Monday reported a 43.5 per cent jump in its net profit to Rs 165 crore in the quarter ended in September 2021 on improved credit off-take in retail and business segments as well as a fall in bad loan provisions.

The south-based lender had posted a net profit of Rs 115 crore in the same quarter a year ago.

The bank's total income from operations during the July-September quarter of 2021-22, however, was down at Rs 1,561.05 crore as against Rs 1,577.45 crore in the same period of 2020-21, KVB said in a release.

Improved credit off take in retail and business segments as well as jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels, aided the credit growth, it said.

"Jewel loan portfolio registered a year-on-year growth of Rs 2,319 crore (21 per cent) and stands at Rs 13,460 crore as on September 30, 2021," the bank said.

The interest income remained flat Rs 1,397.95 crore during the quarter, as compared with Rs 1,394.70 crore in the year-ago period.

The asset quality of the bank showed improvement, as the gross non-performing assets (NPAs) came down to 7.38 per cent of the gross advances as of September 30, 2021, from 7.93 per cent by year ago period.

In value terms, the gross NPAs of the bank stood at Rs 3,971.64 crore, down from Rs 3,998.43 crore.

However, the net NPA ratio was stable at 2.99 per cent. In absolute value, the amount was at Rs 1,537.71 crore by the end of Q2FY22, up from Rs 1,428.20 crore by September 2020.

The provisions for bad loans and contingencies for Q2FY22 were lowered to Rs 164.15 crore, as against Rs 195.92 crore in Q2FY21 and Rs 244.63 crore in Q1FY22.

KVB said its total business at end-September 2021 stood at Rs 1,19,260 crore, registering a yearly growth of 7 per cent.

Gross advances grew by 7 per cent to Rs 53,850 crore. Total deposits also grew by 7 per cent to Rs 65,410 crore.

"Growth was aided through sustained improvement in CASA (current account savings account) portfolio and retail term deposits," it said.

Provision Coverage Ratio (PCR) stands at 76.28 per cent (75.19 per cent a year ago).

Karur Vysya Bank shares closed at Rs 53, up 3.21 per cent from the previous close, on BSE.

(PTI)


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