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Karur Vysya Bank has reported 35% growth in net profit at Rs 456.10 crore
for the quarter ended March 2024 (Q4FY2024). The bank has posted healthy 12%
growth in net interest income (NII), while the core fee income of the bank also
improved 19% in Q4FY2024. The Net Interest Margin (NIM) of the bank eased to
4.19% in Q4FY2024 compared to 4.37% in the corresponding quarter of previous
year.
On business front, the
bank as has posted 16% growth in business with strong 16% surge in loan book.
The asset quality of the bank was stable in Q4FY2024. The credit to deposit
ratio of the bank was steady at 83.5% at end March 2024 from 83.7% at end March
2023. However, the CASA ratio of the bank has declined to 30.4% at end March
2024 from 33.2% at end March 2023.
During
Q4FY2024, the bank has reversed Rs 157 crore of provision for SR investments
made earlier resulting in increase in other income and reclassified the same
amount as provision for Non Performing Investments under provisions. However,
there is no impact on net profit.
Asset quality improves: The bank has continued
to improve asset quality in Q4FY2024.
The fresh slippages of
loans stood at Rs 201 crore in Q4FY2024 compared with 197 crore in previous
quarter and Rs 222 crore in the corresponding quarter last year.
The recoveries of NPAs and
upgradations stood at Rs 110 crore and the write-off of loans was at Rs 201
crore in Q4FY2024.
The standard
restructured loan book of the bank stood at Rs 715 crore end March 2024.
Provision coverage ratio
was steady at 94.85% at end March 2024 compared to 94.81% a quarter ago and
92.14% a year ago.
The capital adequacy
ratio of the bank stood at 16.7% with Tier I ratio at 15.5% at end March 2024.
The risk weighted assets
of the bank has increased 25% YoY to Rs 61125 crore end March 2024,
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Asset Quality Indicators:
Punjab National Bank
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Mar/24
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Dec/23
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Sep/23
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Jun/23
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Mar/23
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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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1041.64
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1151.86
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1219.08
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1329.65
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1458.15
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-10
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-29
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Net NPA (Rs Crore)
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297.97
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305.27
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323.63
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390.02
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468.15
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-2
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-36
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% Gross NPA
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1.40
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1.58
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1.73
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1.99
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2.27
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-18
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-87
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% Net NPA
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0.40
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0.42
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0.47
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0.59
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0.74
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-2
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-34
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% PCR
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94.85
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94.81
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94.49
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93.41
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92.14
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4
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271
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% CRAR - Basel III
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16.67
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15.39
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16.84
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17.67
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18.56
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128
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-189
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% CRAR - Tier I -
Basel III
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15.46
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13.87
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15.19
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15.96
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16.79
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159
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-133
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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 16% YoY to Rs 163536 crore end March 2024, driven by 16% surge in
advances to Rs 74423 crore. Deposits incerased 16% to Rs 89113 crore at end
March 2024.
CASA deposits ratio eases:
The CASA deposits of the
bank increased 6% YoY to Rs 27085 crore at end March 2024. The current account
deposits increased 8% to Rs 8283 crore, while saving account deposits rose 3%
to Rs 18802 crore end March 2024. The CASA ratio declined to 30.4% at end March
2024 compared to 33.2% at end March 2023, while eased from 31.5% a quarter ago.
The term deposits have increased 21% to Rs 62028 crore end March 2024.
Strong loan growth: Advances growth was
driven by retail loans rising 18% YoY to Rs 17662 crore at end March 2024,
while credit to agriculture increased 17% to Rs 17363 crore and MSME 21% to Rs
25449 crore at end March 2024. The corporate credit rose 5% to Rs 13949 crore
end March 2024.
Investment book of the bank moved up 18% YoY to Rs 22840 crore at end March 2024.
The SLR book increased 16% to Rs 19339 crore, while non SLR book jumped 31% to
Rs 3501 crore at end March 2024. The AFS book galloped 73% to Rs 5710 crore,
while HTM book rose 6% to Rs 17130 crore at end March 2024. The duration of the
AFS investment portfolio stood at 2.14 years end March 2024 compared with 0.99
years at end March 2023.
Margins decline: The bank has showed 75
bps YoY jump in cost of deposits to 5.36%, while yield on advances increased 53
bps YoY to 10.08% in Q4FY2024. Thus, the NIM has declined 18 bps YoY and 13 bps
qoq to 4.19% in Q4FY2024
Branch expansion: The bank has added 7
branches and 11 ATMs in Q4FY2024, taking overall tally to 838 branches and 2262
ATM`s end March 2024.
Book value of the bank stood at Rs
124.8 per share at end March 2024, while the adjusted book value (net of NNPA
and 10% of restructured advances) was Rs 120.2 per share at end March 2024.
Quarterly Performance
NII rises on healthy
loan growth: Bank has recorded 24% increase in the interest earned at Rs
2184.57 crore, while interest expenses increased 36% to Rs 1189.11 crore in
Q4FY2024. NII improved 12% to Rs 995.46 crore in the quarter ended March 2024.
Healthy growth in the
core fee income: Bank has posted strong 19% growth in core fee income to Rs 241
crore, while the recoveries and other income jumped 95% to Rs 388 crore leading
to 57% surge in the overall non-interest income to Rs 628.85 crore in the
quarter ended March 2024.
Expenses ratio jumps: The operating expenses
of the bank increased 37% to Rs 757.40 crore, as other expenses moved up 16% to
Rs 317.65 crore, while employee expenses zoomed 57% to Rs 439.75 crore in
Q4FY2024. Cost to income ratio jumped to 46.6% in Q4FY2024 compared with 42.9%
in Q4FY2023, helping the Operating Profit to increase 17% to Rs 866.91 crore.
Provisions and
contingencies steady: The provisions of the bank remained flat at Rs 293.41 crore. The
loan loss provisions declined 8% to Rs 110 crore and standard asset provisions
fell 99% to Rs 2 crore. However, the investment provisions surged to Rs 157
crore and other provisions were at Rs 25 crore.
Effective tax rate declined to 20.5% in Q4FY2024 from 24.3% in Q4FY2023. Net Profit rose by 35%
YoY to Rs 456.10 crore during quarter ended March 2024.
Financial Performance
FY2024:
Bank has posted 45%
increase in net profit to Rs 1604.81 crore in the year ended March 2024
(FY2024). The net interest income increased 14% to Rs 3809.20 crore, while
non-interest income moved up 43% to Rs 1658.69 crore, pushing up net total
income by 21% to Rs 5467.89 crore in FY2024. The operating expenses increased
30% to Rs 2638.75 crore, while provision and contingencies dipped 30% to Rs
728.95 crore, allowing profit before tax to increase 46% to Rs 2100.19 crore in
FY2024. The cost-to-income ratio increased to 48.3% in FY2024 compared to 45.1%
in FY2023. An effective tax rate rose to 23.6% in FY2024 compared to 23.0% in
FY2023. The net profit has increased 45% to Rs 1604.81 crore in FY2024.
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Karur Vysya Bank: Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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2184.57
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1768.32
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24
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8203.94
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6516.55
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26
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Interest Expended
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1189.11
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875.74
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36
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4394.74
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3167.74
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39
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Net Interest Income
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995.46
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892.58
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12
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3809.20
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3348.81
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14
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Other Income
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628.85
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400.81
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57
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1658.69
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1158.94
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43
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Net Total Income
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1624.31
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1293.39
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26
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5467.89
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4507.75
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21
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Operating Expenses
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757.40
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554.34
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37
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2638.75
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2031.96
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30
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Operating Profits
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866.91
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739.05
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17
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2829.14
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2475.79
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14
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Provisions &
Contingencies
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293.41
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293.01
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0
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728.95
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1038.93
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-30
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Profit Before Tax
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573.50
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446.04
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29
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2100.19
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1436.86
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46
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Provision for tax
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117.40
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108.22
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8
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495.38
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330.77
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50
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PAT
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456.10
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337.82
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35
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1604.81
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1106.09
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45
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EPS*(Rs)
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22.7
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16.8
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20.0
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13.8
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Adj BV (Rs)
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120.2
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100.0
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120.2
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100.0
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* Annualized on current equity of
Rs 160.86 crore. Face Value: Rs 2, Figures in Rs crore
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Source: Capitaline Corporate
Database
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