Karur Vysya Bank

KVB Q1 Fy23 Results- Press Release
The Bank has a delivered a strong performance in terms of business growth, which has grown 12%
YoY as well as a commendable 110% growth in Net Profit.
Reduction in NPA, improved credit off take and stable NIM has resulted in improved profitability

Business performance

• Total business as on 30th June 2022 stands at Rs. 1,30,780 crore, registering a Y-o-Y growth of 12.05% i.e. up Rs. 14,067 crore from Rs. 1,16,713 crore as on 30.06.2021. Business has grown by Rs. 4,554 crore during Q1, from a level of Rs. 1,26,226 crore as on 31.03.2022.

• Credit portfolio grew by ~14% Y-o-Y (Rs. 7,297 crore) and gross advances stands at Rs. 59,612 crore as on 30.06.2022, up from Rs. 52,315 crore a year ago.

• Credit off take continues to improve both Y-o-Y as well as Q-o-Q terms aiding the growth of advances portfolio.

• Jewel Loan portfolio registered a Y-o-Y growth of Rs. 1,667 crore (~13%) and stands at Rs. 14,873 crore as on 30.06.2022 (up from Rs. 13,206 crore a year ago).

• Total deposits grew by Rs. 6,770 crore (~11%) to Rs. 71,168 crore, up from Rs. 64,398 crore as of 30.06.2021. CASA portfolio and retail term deposits were growth drivers.

• CASA share is up by 118 bps to 36.42%; CASA deposits are up at Rs.25,916 crore i.e. a growth of 14.23% on Y-o-Y basis (Rs. 22,688 crore a year ago).

• Basel III CRAR stands at 19.21% (with CET1 Ratio of 17.25%), up from 19.06% as on 30.06.2021.

• As at 30.06.2022, Gross NPA has declined to 5.21% (Rs. 3,107 crore) as compared to 7.97%
  (Rs. 4,167 crore) a year ago. GNPA as on 31.03.2022 was Rs. 3,431 crore (5.96%).

• Net NPA stands at 1.91% (Rs. 1,098 crore) as on 30.06.2022 (3.69% a yr ago – Rs. 1,845 cr).

• Provision Coverage Ratio stands at 82.74% (72.40% a year ago).

• Branch and ATM + Cash Recyclers network as on 30.06.2022 stands at 789 & 2,237 respectively (corresponding position was 781 & 2,251 as on 30.06.2021).

Financial Performance
Net profit for the quarter grew by 110% and stood at Rs. 229 crore from Rs. 109 crore during Q1 of previous year.
 Operating profit for the quarter was Rs. 475 crore as compared to Rs. 412 crore.
 Net interest income for the quarter improved by ~17% (Rs. 108 crore) to Rs. 746 crore for the current quarter vis-à-vis Rs. 638 crore for Q1 of previous year.
 Net interest margin stands at 3.82% up 27 bps from 3.55% a year ago.
 Cost of deposits has improved by 44 bps and stands at 4.09% as compared to 4.53% during the previous year.
 Yield on advances is at 8.27% (8.55% for Q1 of previous year).
 Non-interest income for the quarter is Rs. 199 crore during the current
quarter as compared to Rs. 203 crore a year ago.
 Fee based income has improved by Rs. 40 crore on Y-o-Y basis to Rs. 187 crore from Rs. 147 crore during the previous year.
 Operating expenses for the quarter was Rs. 469 crore as compared to Rs. 429 crore during Q1 of previous year.
 Cost to income ratio stands at 49.68% (51.03% for Q1 of previous year).