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Karur Vysya Bank has reported 42%
growth in net profit at Rs 411.63 crore for the quarter ended December 2023
(Q3FY2024). The bank has posted healthy 13% growth in net interest income
(NII), while the core fee income of the bank also improved 23% in Q3FY2024. The
Net Interest Margin (NIM) of the bank was nearly steady at 4.32% in Q3FY2024
compared to 4.36% in the corresponding quarter of previous year, while it has
improved from 4.07% in the previous quarter.
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 was stable in Q3FY2024. Bank has substantially
improved the credit to deposit ratio to 84.9% at end December 2023 from 82.8%
at end December 2022. However, the CASA ratio of the bank has declined to 31.5%
at end December 2023 from 34.0% at end December 2022.
Asset quality improves: The bank has further
improved asset quality in Q3FY2024.
The fresh slippages of
loans stood at Rs 197 crore in Q3FY2024 compared with 155 crore in previous
quarter and Rs 162 crore in the corresponding quarter last year.
The recoveries and
upgradations of NPAs were at Rs 113 crore and the write-off of loans was at Rs
151 crore in Q3FY2024.
The standard
restructured loan book of the bank declined Rs 795 crore end December 2023.
Provision coverage ratio
improved to 94.81% at end December 2023 compared to 94.49% a quarter ago and
90.87% a year ago.
The capital adequacy
ratio of the bank stood at 15.4% with Tier I ratio at 13.9% at end December
2023.
The risk weighted assets
of the bank has increased 29% YoY to Rs 59531 crore end December 2023,
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Asset Quality
Indicators: Karur Vysya Bank
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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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Dec/22
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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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1151.86
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1219.08
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1329.65
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1458.15
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1674.34
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-6
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-21
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-31
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Net NPA (Rs Crore)
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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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550.43
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-6
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-35
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-45
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% Gross NPA
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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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2.70
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-15
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-69
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-112
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% Net NPA
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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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0.90
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-5
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-32
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-48
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% PCR
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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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90.87
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32
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267
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394
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% CRAR - Basel III
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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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17.62
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-145
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-317
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-223
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% CRAR - Tier I -
Basel III
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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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16.00
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-132
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-292
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-213
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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 158357 crore end December 2023, driven by 16% surge
in advances to Rs 72692 crore. Deposits rose 13% to Rs 85665 crore at end
December 2023.
CASA deposits ratio
declines: The
CASA deposits of the bank rose 5% YoY to Rs 27012 crore at end December 2023.
The current account deposits rose 2% to Rs 8508 crore, while saving account
deposits increased 4% to Rs 18504 crore end December 2023. The CASA ratio eased
to 31.5% at end December 2023 compared to 34.0% at end December 2022, while
declined from 32.3% a quarter ago. The term deposits have increased 17% to Rs
58653 crore end December 2023.
Strong retail loan
growth: Advances
growth was driven by retail loans rising 21% YoY to Rs 17090 crore at end
December 2023, while credit to agriculture increased 19% to Rs 16833 crore and
MSME 19% to Rs 24398 crore at end December 2023. The corporate credit rose 2%
to Rs 14371 crore end December 2023. The share of retail, agriculture and MSME
loan has increased to 80.2% of loan book from 79.5% quarter ago and 77.5% a
year ago.
Investment book of the bank increased 11% YoY to Rs 21473 crore at end December
2023. The AFS book jumped 31% to Rs 4939 crore, while HTM book rose 6% to Rs
16534 crore at end December 2023. The duration of the overall investment
portfolio stood at 3 years end December 2023 compared with 2.9 years at end
December 2022.
Margins improve
sequentially: The bank has showed 99 bps YoY jump in cost of deposits to 5.25%,
while yield on advances increased 102 bps YoY to 10.16% in Q3FY2024. NIM has eased
4 bps YoY, but jumped 25 bps qoq to 4.32% in QFY2024.
Branch expansion: The bank has added 7
branches and 7 ATMs in Q3FY2024, taking overall tally to 831 branches and 2251
ATM`s end December 2023.
Book value of the bank stood at Rs
119.2 per share at end December 2023, while the adjusted book value (net of
NNPA and 10% of restructured advances) was Rs 114.4 per share at end December
2023.
Quarterly Performance
NII rises on better
margins and healthy loan growth: Bank has recorded 26% increase in the interest earned at Rs
2139.38 crore, while interest expenses increased 41% to Rs 1138.09 crore in
Q3FY2024. NII improved 13% to Rs 1001.29 crore in the quarter ended December
2023.
Healthy growth in the
core fee income: Bank has posted strong 23% growth in core fee income to Rs 226
crore, leading to 13% rise in the overall non-interest income to Rs 357.79
crore in the quarter ended December 2023. However, the recoveries and other
income fell 1% to Rs 132 crore.
Expenses ratio jumps: The operating expenses
of the bank increased 32% to Rs 683.18 crore, as other expenses moved up 18% to
Rs 308.45 crore, while employee expenses increased 47% to Rs 374.73 crore in
Q3FY2024. Cost to income ratio rose to 50.3% in Q3FY2024 compared with 42.9% in
Q3FY2023, causing 2% decline in the Operating Profit to Rs 675.90 crore.
Provisions and
contingencies decline: The bank has showed 59% decline in provisions to Rs 149.71 crore.
The loan loss provisions declined 57% to Rs 108 crore, while standard asset
provisions fell 9% to Rs 29 crore. The bank has written back investment
provisions of Rs 6 crore, but other provisions rebounded to Rs 18 crore.
Effective tax rate jumped to 21.8% in Q3FY2024 from 10.9% in Q3FY2023. Net Profit rose by 42% YoY
to Rs 411.63 crore during quarter ended December 2023.
Financial Performance
9MFY2024:
Bank has posted 50%
increase in net profit to Rs 1148.71 crore in the nine month ended December
2023 (9MFY2024). The net interest income increased 15% to Rs 2813.74 crore,
while non-interest income moved up 36% to Rs 1029.84 crore, pushing up net
total income by 20% to Rs 3843.58 crore in 9MFY2024. The operating expenses
increased 27% to Rs 1881.35 crore, while provision and contingencies dipped 42%
to Rs 435.54 crore, allowing profit before tax to increase 54% to Rs 1526.69
crore in 9MFY2024. The cost-to-income ratio jumped to 48.9% in 9MFY2024
compared to 46.0% in 9MFY2023. An effective tax rate rose to 24.8% in 9MFY2024
compared to 22.5% in 9MFY2023. The net profit has increased 50% to Rs 1148.71
crore in 9MFY2024.
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Karur Vysya Bank: Results
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Particulars
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2312 (3)
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2212 (3)
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Var %
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2312 (9)
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2212 (9)
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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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2139.38
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1695.22
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26
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6019.37
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4748.23
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27
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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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1138.09
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806.22
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41
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3205.63
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2292.00
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40
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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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1001.29
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889.00
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13
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2813.74
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2456.23
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15
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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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357.79
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317.49
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13
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1029.84
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758.13
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36
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1158.94
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769.06
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51
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Net Total Income
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1359.08
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1206.49
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13
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3843.58
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3214.36
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20
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4507.75
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3484.43
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29
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Operating Expenses
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683.18
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517.54
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32
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1881.35
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1477.62
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27
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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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675.90
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688.95
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-2
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1962.23
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1736.74
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13
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2475.79
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1630.21
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52
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Provisions &
Contingencies
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149.71
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364.09
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-59
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435.54
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745.92
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-42
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1038.93
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699.29
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49
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Profit Before Tax
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526.19
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324.86
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62
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1526.69
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990.82
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54
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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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114.56
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35.57
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222
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377.98
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222.55
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70
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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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411.63
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289.29
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42
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1148.71
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768.27
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50
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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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20.5
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14.4
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19.1
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12.7
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13.76
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8.38
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Adj BV (Rs)
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114.4
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94.5
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114.4
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94.5
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100.0
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77.1
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* Annualized on current equity of
Rs 160.75 crore. Face Value: Rs 2, Figures in Rs crore
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Source: Capitaline Corporate
Database
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