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Karur Vysya Bank has reported 58% growth
in net profit at Rs 337.82 crore for the quarter ended March 2023 (Q4FY2023). The
bank has posted healthy 26% growth in net interest income (NII), while the core
fee income of the bank also improved 11% in Q4FY2023. The Net Interest Margin
(NIM) of the bank improved to 4.37% in Q4FY2023 compared to 3.82% in the
corresponding quarter of previous year.
On business front, the bank as has posted 14% growth
in business with strong 16% surge in loan book. The asset quality of the bank has
further improved in Q4FY2023. Bank has substantially improved the credit to
deposit ratio to 86.2% at end March 2023 from 83.1% at end March 2022. CASA
ratio of the bank has eased to 33.2% at end March 2023 from 34.9% at end March
2022.
Asset quality improves: The bank has continued to improve asset quality
in Q4FY2023.
The fresh slippages of loans stood at Rs 222 crore
in Q4FY2023 compared with 162 crore in previous quarter and Rs 300 crore in the
corresponding quarter last year.
The recoveries and upgradations of NPAs was at
Rs 181 crore and the write-off of loans was at Rs 257 crore in Q4FY2023.
The standard restructured loan book of the bank declined
to Rs 976 crore end March 2023.
Provision coverage ratio was steady at 92.14% at
end March 2023 compared to 90.87% a quarter ago and 80.27% a year ago.
The capital adequacy ratio of the bank stood at 18.6%
with Tier I ratio at 16.8% at end March 2023.
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Asset Quality Indicators:
Punjab National Bank
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Mar-23
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Dec-22
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Sep-22
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Jun-22
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Mar-22
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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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1458.15
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1674.34
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2456.53
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3107.17
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3431.04
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-13
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-58
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Net NPA (Rs Crore)
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468.15
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550.43
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818.72
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1098.36
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1260.79
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-15
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-63
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% Gross NPA
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2.27
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2.66
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3.97
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5.21
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5.96
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-39
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-369
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% Net NPA
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0.74
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0.89
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1.36
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1.91
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2.28
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-15
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-154
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% PCR
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92.14
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90.87
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86.94
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82.74
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80.27
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127
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1187
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% CRAR - Basel III
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18.56
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17.86
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18.31
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19.21
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19.21
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70
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-65
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% CRAR - Tier I -
Basel III
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16.79
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17.86
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16.42
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17.25
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17.27
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-107
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-48
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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 14% YoY
to Rs 142669 crore end March 2023, driven by 16% surge in advances to Rs 66031 crore.
Deposits rose 12% to Rs 76638 crore at end March 2023.
CASA deposits ratio eases: The CASA deposits of the bank increased 6% YoY
to Rs 25449 crore at end March 2023. The CASA ratio declined to 33.2% at end
March 2023 compared to 34.9% at end March 2022 and 33.9% a quarter ago.
Strong loan growth: Advances growth was driven by retail loans
rising 16% YoY to Rs 15054 crore at end March 2023, while credit to agriculture
increased 18% to Rs 14969 crore and MSME 15% to Rs 21445 crore at end March
2023. The corporate credit has increased 16% to Rs 14563 crore end March 2023.
Investment
book of the bank rose 9% YoY
to Rs 19411 crore at end March 2023. The AFS book increased 13% to Rs 3300 crore,
while HTM book rose 9% to Rs 16111 crore at end March 2023. The duration of the
overall investment portfolio stood at 2.86 years end March 2023 compared with 3.07
years at end March 2022.
Margins improve: The bank has showed 48 bps YoY increase in cost
of deposits to 4.61%, while yield on advances surged 118 bps YoY to 9.55% in
Q4FY2023. Thus, the NIM has improved 55 bps YoY to 4.37%.
Branch expansion: The bank has added 7 branches and 7 ATMs in
Q4FY2023, taking overall tally to 799 branches and 2240 ATM`s end March 2023.
Book value of the bank stood at Rs 107.0 per share at end March 2023, while
the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 100.0
per share at end March 2023.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 25% increase in the interest
earned at Rs 1768.32 crore, while interest expenses increased 25% to Rs 875.74 crore
in Q4FY2023. NII improved 26% to Rs 892.58 crore in the quarter ended March
2023.
Healthy growth in the core fee income: Bank has posted strong 11% growth in core fee
income to Rs 202 crore, while the recoveries and other income jumped 765% to Rs
199 crore. The overall non-interest income surged 95% to Rs 400.81 crore in the
quarter ended March 2023.
Expenses ratio improves: The operating expenses of the bank increased 17%
to Rs 554.34 crore, as other expenses moved up 9% to Rs 273.69 crore, while
employee expenses increased 26% to Rs 280.65 crore in Q4FY2023. Cost to income
ratio dipped to 42.9% in Q4FY2023 compared with 51.8% in Q4FY2022, helping the
Operating Profit to increase 67% to Rs 739.05 crore.
Provisions and contingencies surges: The bank has showed 109% jump in provisions to
Rs 293.01 crore. The loan loss provisions increased 24% to Rs 170 crore, while standard
asset provisions rebounded to Rs 117 crore. The other provisions declined 75% to
Rs 1 crore.
Effective tax rate declined to 24.3% in Q4FY2023 from 29.1% in Q4FY2022. Net
Profit rose by 58% YoY to Rs 337.82 crore during quarter ended March 2023.
Ramesh Babu B,
Managing Director & CEO, The Karur Vysya Bank said, “As a Bank, we have
traversed a phenomenal distance in an extremely challenging environment. We
have transformed ourselves in line with the evolving business scenario to
become more agile, more relevant and totally dedicated to the needs of our
customers. We have performed consistently to deliver highest ever annual Net
profit of ?1,106cr for the FY 22-23. Credit Cost has improved on the back of
continued strong asset quality, with GNPA and NNPA at 2.27% and 0.74% respectively.
Broad based business growth coupled with core revenue profile has yielded in
higher ROA, currently at 1.27% for the year and 1.50% for the quarter. Inspired
by this experience, the team is hopeful of continuing its growth trajectory in
the coming year also”.
Financial Performance FY2023:
Bank has posted 64% increase in net profit to Rs
1106.09 crore in the year ended March 2023 (FY2023). The net interest income
increased 23% to Rs 3348.81 crore, while non-interest income moved up 51% to Rs
1158.94 crore, pushing up net total income by 29% to Rs 4507.75 crore in FY2023.
The operating expenses increased 10% to Rs 2031.96 crore, while provision and
contingencies galloped 49% to Rs 1038.93 crore, allowing profit before tax to
increase 54% to Rs 1436.86 crore in FY2023. The cost-to-income ratio improved
to 45.1% in FY2023 compared to 53.2% in FY2022. An effective tax rate declined
to 23.0% in FY2023 compared to 27.7% in FY2022. The net profit has increased 64%
to Rs 1106.09 crore in FY2023.
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Karur Vysya Bank: Results
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Particulars
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2303 (3)
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2203 (3)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Interest Earned
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1768.32
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1409.27
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25
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6516.55
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5587.67
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17
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Interest Expended
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875.74
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699.34
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25
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3167.74
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2872.30
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10
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Net Interest Income
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892.58
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709.93
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26
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3348.81
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2715.37
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23
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Other Income
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400.81
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205.48
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95
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1158.94
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767.51
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51
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Net Total Income
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1293.39
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915.41
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41
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4507.75
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3482.88
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29
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Operating Expenses
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554.34
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474.10
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17
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2031.96
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1854.22
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10
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Operating Profits
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739.05
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441.31
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67
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2475.79
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1628.66
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52
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Provisions &
Contingencies
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293.01
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140.12
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109
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1038.93
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697.74
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49
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Profit Before Tax
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446.04
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301.19
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48
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1436.86
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930.92
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54
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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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446.04
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301.19
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48
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1436.86
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930.92
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54
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Provision for tax
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108.22
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87.72
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23
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330.77
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257.65
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28
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PAT
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337.82
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213.47
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58
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1106.09
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673.27
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64
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EPS*(Rs)
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16.8
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10.6
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13.8
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8.4
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Adj BV (Rs)
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100.0
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77.1
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100.0
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77.1
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* Annualized on current equity of
Rs 160.41 crore. Face Value: Rs 2, Figures in Rs crore
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Source: Capitaline Corporate
Database
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