|
Karur Vysya Bank has reported 57% growth
in net profit at Rs 358.63 crore for the quarter ended June 2023 (Q1FY2024). The
bank has posted healthy 20% growth in net interest income (NII), while the core
fee income of the bank also improved 9% in Q1FY2024. The Net Interest Margin
(NIM) of the bank improved to 4.19% in Q1FY2024 compared to 3.82% in the
corresponding quarter of previous year, while eased from 4.37% in the previous
quarter.
On business front, the bank as has posted 14% growth
in business with 14% jump in loan book. The asset quality of the bank has
improved substantially in Q1FY2024. Bank has improved the credit to deposit
ratio to 83.1% at end June 2023 from 82.7% at end June 2022. The CASA ratio of
the bank has declined to 32.9% at end June 2023 from 36.4% at end June 2022,
while it was nearly steady from 33.2% end March 2023.
Asset quality improves: The bank has exhibited healthy improvement in
the asset quality in Q1FY2024.
The fresh slippages of loans stood at Rs 150 crore
in Q1FY2024 compared with Rs 222 crore in previous quarter and Rs 139 crore in
the corresponding quarter last year.
The recoveries and upgradations of NPAs was at
Rs 127 crore and the write-off of loans was at Rs 151 crore in Q1FY2024.
Segment
wise commercial segment contributed fresh slippages of Rs 97 crore, retail Rs
42 crore, agriculture Rs 5 crore and corporate Rs 6 crore.
The
GNPA segment wise for commercial segment stood at Rs 736 crore with provisions
of Rs 441 crore, retail Rs 337 crore with provisions of Rs 233 crore,
agriculture Rs 89 crore with provisions of Rs 70 crore, corporate Rs 168 crore
with provisions of Rs 163 crore end March 2023.
The standard restructured loan book of the bank declined
to Rs 893 crore end June 2023.
Segment
wise the restructured loans in the commercial segment were at Rs 303 crore,
retail Rs 404 crore, agriculture nil and corporate Rs 186 crore end March 2023.
Provision coverage ratio was steady at 93.41% at
end June 2023 compared to 92.14% a quarter ago and 82.74% a year ago.
The capital adequacy ratio of the bank stood at 17.7%
with Tier I ratio at 16.0% at end June 2023.
|
Asset Quality
Indicators: Punjab National Bank
|
|
|
Jun/23
|
Mar/23
|
Dec/22
|
Sep/22
|
Jun/22
|
Variation
|
|
QoQ
|
YoY
|
|
Gross NPA (Rs Crore)
|
1329.65
|
1458.15
|
1674.34
|
2456.53
|
3107.17
|
-9
|
-57
|
|
Net NPA (Rs Crore)
|
390.02
|
468.15
|
550.43
|
818.72
|
1098.36
|
-17
|
-64
|
|
% Gross NPA
|
1.99
|
2.27
|
2.70
|
3.97
|
5.21
|
-28
|
-322
|
|
% Net NPA
|
0.59
|
0.74
|
0.90
|
1.36
|
1.91
|
-15
|
-132
|
|
% PCR
|
93.41
|
92.14
|
90.87
|
86.94
|
82.74
|
127
|
1067
|
|
% CRAR - Basel III
|
17.67
|
18.56
|
17.62
|
18.31
|
19.21
|
-89
|
-154
|
|
% CRAR - Tier I -
Basel III
|
15.96
|
16.79
|
16.00
|
16.42
|
17.25
|
-83
|
-129
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Healthy business growth: The business of the bank has increased 14% YoY
to Rs 147821 crore end June 2023, driven by 14% surge in advances to Rs 67106 crore.
Deposits rose 13% to Rs 80715 crore at end June 2023.
CASA deposits ratio declines: The CASA deposits of the bank rose 2% YoY to Rs 26549
crore at end June 2023. The CASA ratio declined to 32.9% at end June 2023
compared to 36.4% at end June 2022, while eased from 33.2% a quarter ago.
Healthy loan growth: Advances growth was driven by retail loans
rising 18% YoY to Rs 15634 crore at end June 2023, while credit to agriculture
increased 18% to Rs 15623 crore and MSME 20% to Rs 22295 crore at end June
2023. The corporate credit has declined 1% to Rs 13554 crore end June 2023.
Investment
book of the bank moved up 9%
YoY to Rs 20640 crore at end June 2023. The AFS book increased 15% to Rs 4747 crore,
while HTM book rose 7% to Rs 15893 crore at end June 2023. The duration of the overall
investment portfolio stood at 2.86 years end June 2023 compared with 3.01 years
at end June 2022.
Margins improve yoy: The bank has showed 87 bps YoY jump in cost of
deposits to 4.96%, while yield on advances jumped 142 bps YoY to 9.69% in Q1FY2024.
Thus, the NIM has improved 37 bps YoY to 4.19%. However, the NIM has moderated
from high of 4.37% in Q4FY2023.
Branch expansion: The bank has added 9 branches in Q1FY2024, taking
overall tally to 808 branches and 2240 ATM`s end June 2023.
Book value of the bank stood at Rs 111.5 per share at end June 2023, while
the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 105.5
per share at end June 2023.
Quarterly Performance
NII rises as NIM improves yoy: Bank has recorded 28% increase in the interest
earned at Rs 1882.91 crore, while interest expenses increased 35% to Rs 985.84 crore
in Q1FY2024. NII improved 20% to Rs 897.07 crore in the quarter ended June
2023.
Healthy growth in the core fee income: Bank has posted strong 9% growth in core fee
income to Rs 204 crore, while the recoveries and other income jumped 975% to Rs
129 crore. The overall non-interest income jumped 67% to Rs 333.16 crore in the
quarter ended June 2023.
Expenses ratio improves: The operating expenses of the bank increased 24%
to Rs 581.81 crore, as other expenses moved up 12% to Rs 262.9 crore, while
employee expenses galloped 35% to Rs 318.91 crore in Q1FY2024. Cost to income
ratio improved to 47.3% in Q1FY2024 compared with 49.7% in Q1FY2023, helping the
Operating Profit to increase 36% to Rs 648.42 crore.
Provisions and contingencies stable: The bank has showed 3% rise in provisions to Rs 159.42
crore. The loan loss provisions declined -10% to Rs 126 crore, while the bank
has reversed investment provisions of Rs 2 crore. The standard asset provisions
jumped 64% to Rs 36 crore.
Effective tax rate declined to 26.7% in Q1FY2024 from 28.7% in Q1FY2023. Net
Profit rose by 57% YoY to Rs 358.63 crore during quarter ended June 2023.
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.
|
Karur Vysya Bank: Results
|
|
Particulars
|
2306 (3)
|
2206 (3)
|
Var %
|
2303 (12)
|
2203 (12)
|
Var %
|
|
Interest Earned
|
1882.91
|
1473.53
|
28
|
6516.55
|
5587.67
|
17
|
|
Interest Expended
|
985.84
|
727.65
|
35
|
3167.74
|
2872.30
|
10
|
|
Net Interest Income
|
897.07
|
745.88
|
20
|
3348.81
|
2715.37
|
23
|
|
Other Income
|
333.16
|
199.07
|
67
|
1158.94
|
767.51
|
51
|
|
Net Total Income
|
1230.23
|
944.95
|
30
|
4507.75
|
3482.88
|
29
|
|
Operating Expenses
|
581.81
|
469.48
|
24
|
2031.96
|
1854.22
|
10
|
|
Operating Profits
|
648.42
|
475.47
|
36
|
2475.79
|
1628.66
|
52
|
|
Provisions &
Contingencies
|
159.42
|
154.64
|
3
|
1038.93
|
697.74
|
49
|
|
Profit Before Tax
|
489.00
|
320.83
|
52
|
1436.86
|
930.92
|
54
|
|
Provision for tax
|
130.37
|
92.08
|
42
|
330.77
|
257.65
|
28
|
|
PAT
|
358.63
|
228.75
|
57
|
1106.09
|
673.27
|
64
|
|
EPS*(Rs)
|
17.9
|
11.4
|
|
13.8
|
8.4
|
|
|
Adj BV (Rs)
|
105.5
|
82.1
|
|
100.0
|
77.1
|
|
|
* Annualized on current equity of
Rs 160.48 crore. Face Value: Rs 2, Figures in Rs crore
|
|
Source: Capitaline Corporate
Database
|
|