Karur Vysya Bank’s second quarter net profit increases by 43.5%

CHENNAI: Karur Vysya Bank saw its net profit increase by 43.5% to Rs 165 crore for the quarter ended in September, compared to Rs 115 crore during the corresponding period of last year. This is explained by the drop in provisions made for bad debts and the improvement in the quality of assets.
The private lender reduced the amount allocated for provisions and contingencies against bad assets by Rs 30 crore from Rs 195 crore in September 2020 to Rs 164 crore in September 2021.
The quality of its assets improved in the second quarter, with gross NPA down 55 basis points to 7.38% from 7.93% a year ago. The net NPA was 2.99%.
Its total business grew 7% year-on-year to Rs 1,19,260 crore in the second quarter.
Gross advances increased 7% year-on-year to Rs 53,850 crore. “Improved lending in the retail and corporate segments as well as the jewelry loan portfolio, supported by digital processing and improved loan sourcing through various channels, have helped to credit growth, “a press release said.
Its jewelry loan portfolio grew 21% year-on-year to Rs 13,460 crore.
Total deposits increased 7% to Rs 65,410 crore, driven by a sustained improvement in the CASA portfolio (up 35%) and retail term deposits.
The Provision Coverage Ratio stands at 76.28% compared to 75.19% a year ago. The Basel III CRAR stood at 18.82% (with a CET1 ratio of 16.79%), up from 18.41% last year.

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