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Karur Vysya Bank has reported 51% growth in net profit at Rs 250.23 crore for
the quarter ended September 2022 (Q2FY2023). The bank has posted healthy 21%
growth in net interest income (NII), while the core fee income of the bank also
improved 22% in Q2FY2023. The Net Interest Margin (NIM) of the bank improved to
4.07% in Q2FY2023 compared to 3.74% in the corresponding quarter of previous
year.
On business front, the bank as has posted 14%
growth in business with strong 15% surge in loan book. The asset quality of the
bank was stable in Q2FY2023. Bank has improved the credit to deposit ratio to
84.0% at end September 2022 from 82.3% at end September 2021. The CASA ratio of
the bank has been steady at 35.2% at end September 2022 from 35.4% at end
September 2021.
Asset quality improves: The bank has improved asset quality with stable
slippages of loans at lower level in Q2FY2023.
The fresh slippages of loans stood at Rs 131
crore in Q2FY2023 compared with 139 crore in previous quarter and Rs 164 crore
in the corresponding quarter last year.
The recoveries and upgradations of NPAs stood at
Rs 205 crore and the write-off of loans was at Rs 576 crore in Q2FY2023.
The standard restructured loan book of the bank declined
to Rs 1231 crore end September 2022.
Provision coverage ratio improved 86.94% at end
September 2022 compared to 82.74% a quarter ago and 76.28% a year ago.
The capital adequacy ratio of the bank stood at
18.3% with Tier I ratio at 16.4% at end September 2022.
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Asset Quality
Indicators: Karur Vysya Bank
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Sep-22
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Jun-22
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Mar-22
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Dec-21
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Sep-21
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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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2456.53
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3107.17
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3431.04
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3887.52
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3971.64
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-21
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-28
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-38
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Net NPA (Rs Crore)
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818.72
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1098.36
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1260.79
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1355.57
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1537.71
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-25
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-35
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-47
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% Gross NPA
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3.97
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5.21
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5.96
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6.97
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7.38
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-124
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-199
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-341
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% Net NPA
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1.36
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1.91
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2.28
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2.55
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2.99
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-55
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-92
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-163
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% PCR
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86.94
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82.74
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80.27
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78.81
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76.28
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420
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667
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1066
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% CRAR - Basel III
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18.31
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19.21
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19.46
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18.79
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18.82
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-90
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-115
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-51
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% CRAR - Tier I -
Basel III
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16.42
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17.25
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17.49
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16.76
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16.79
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-83
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-107
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-37
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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 135460 crore end September 2022, driven by 15% surge in advances to Rs
61846 crore. Deposits rose 13% to Rs 73614 crore at end September 2022.
CASA deposits ratio steady: The CASA deposits of the bank increased 12% YoY
to Rs 25914 crore at end September 2022. The CASA ratio eased marginally to 35.2%
at end September 2022 compared to 35.4% at end September 2021, while declined
from 36.4% a quarter ago.
Strong loan growth: Advances growth was driven by retail loans
rising 13% YoY to Rs 14185 crore at end September 2022, while credit to
agriculture increased 17% to Rs 14167 crore and and MSME 15% to Rs 19761 crore
at end September 2022. The corporate credit book also increased 14% to Rs 13733
crore end September 2022.
Investment
book of the bank rose to Rs
18853 crore at end September 2022. The AFS book was at Rs 3544 crore and HTM
book at Rs 15309 crore at end September 2022. The duration of the overall
investment portfolio stood at 3.02 years with AFS book at 1.3 years end
September 2022.
Margins improve: The bank has showed sharp 24 bps YoY decline in
cost of deposits to 4.08%, while yield on advances decline only 7 bps YoY to
8.55% in Q2FY2023. Thus, the NIM has improved 33 bps YoY to 4.07%.
Branch expansion: The bank has added 3 branches and 1 ATMs in in
Q2FY2023, taking overall tally to 792 branches and 2238 ATM`s end September
2022.
Book value of the bank stood at Rs 99.3 per share at end September 2022,
while the adjusted book value (net of NNPA and 10% of restructured advances)
was Rs 87.6 per share at end September 2022.
Quarterly
Performance
NII rises as NIM improves: Bank has recorded 13% increase in the interest
earned at Rs 1579.48 crore, while interest expenses increased 6% to Rs 758.13
crore in Q2FY2023. NII improved 21% to Rs 821.35 crore in the quarter ended
September 2022.
Healthy growth in the core fee income: Bank has posted strong 22% growth in core fee
income to Rs 174 crore. The overall non-interest income jumped 48% to Rs 241.57
crore in the quarter ended September 2022.
Stable expenses ratio: The operating expenses of the bank increased 4%
to Rs 490.60 crore, as other expenses moved up 18% to Rs 256.73 crore, while
employee expenses fell 7% to Rs 233.87 crore in Q2FY2023. Cost to income ratio improved
to 46.2% in Q2FY2023 compared with 55.7% in Q2FY2022, helping the Operating
Profit to increase 53% to Rs 572.32 crore.
Provisions and contingencies rises: The bank has showed 38% increase in provisions
to Rs 227.19 crore. The loan loss provisions jumped 94% to Rs 209 crore, while
bank has written back standard asset provisions of Rs 7 crore and other
provisions stood at Rs 25 crore.
Effective tax rate rose to 27.5% in Q2FY2023 from 21.1% in Q2FY2022. Net
Profit jumped by 51% YoY to Rs 250.23 crore during quarter ended September
2022.
Financial Performance H1FY2023:
Bank has posted 75% increase in net profit to Rs
478.98 crore in the year half year ended September 2022 (H1FY2023). The net
interest income increased 19% to Rs 1567.23 crore, while non-interest income
moved up 21% to Rs 440.64 crore, pushing up net total income by 19% to Rs 2007.87
crore in H1FY2023. The operating expenses increased 7% to Rs 960.08 crore,
while provision and contingencies declined 7% to Rs 381.83 crore, allowing
profit before tax to increase 78% to Rs 665.96 crore in H1FY2023. The
cost-to-income ratio improved to 47.8% in H1FY2023 compared to 53.4% in
H1FY2022. An effective tax rate rose to 28.1% in H1FY2023 compared to 26.7% in
H1FY2022. The net profit has increased 75% to Rs 478.98 crore in H1FY2023.
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Karur Vysya Bank: Results
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Particulars
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2209 (3)
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2109 (3)
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Var %
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2209 (6)
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2109 (6)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Interest Earned
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1579.48
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1397.95
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13
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3053.01
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2773.89
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10
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5587.67
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5470.42
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2
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Interest Expended
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758.13
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717.64
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6
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1485.78
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1455.68
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2
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2872.30
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3110.91
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-8
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Net Interest Income
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821.35
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680.31
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21
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1567.23
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1318.21
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19
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2715.37
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2359.51
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15
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Other Income
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241.57
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163.10
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48
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440.64
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363.68
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21
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769.06
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918.82
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-16
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Net Total Income
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1062.92
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843.41
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26
|
2007.87
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1681.89
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19
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3484.43
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3278.33
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6
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Operating Expenses
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490.60
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469.57
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4
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960.08
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898.87
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7
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1854.22
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1986.83
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-7
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Operating Profits
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572.32
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373.84
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53
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1047.79
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783.02
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34
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1630.21
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1291.50
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26
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Provisions &
Contingencies
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227.19
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164.15
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38
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381.83
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408.78
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-7
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699.29
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757.13
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-8
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Profit Before Tax
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345.13
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209.69
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65
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665.96
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374.24
|
78
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930.92
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534.37
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74
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Provision for tax
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94.90
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44.24
|
115
|
186.98
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99.92
|
87
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257.65
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174.98
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47
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PAT
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250.23
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165.45
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51
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478.98
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274.32
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75
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673.27
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359.39
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87
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EPS*(Rs)
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12.5
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8.3
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12.0
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6.9
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8.4
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4.5
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Adj BV (Rs)
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87.6
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68.8
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87.6
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68.8
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77.1
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64.4
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* Annualized on current equity of
Rs 160.06 crore. Face Value: Rs 2, Figures in Rs crore
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Source: Capitaline Corporate
Database
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