South-based private sector lender Karur Vysya Bank (KVB) on Monday reported a 110% jump in its net profit to Rs 229 crore for the first quarter of FY23 as compared to Rs 109 crore in the year-ago period, riding on reduction in bad assets, improved credit offtake and stable net interest margin (NIM). Total income of the bank stood at Rs 1,673 crore as against Rs 1,579 crore, registering an increase around 6%.
Net interest income for the quarter improved 17% to Rs 746 crore for the current quarter vis-à-vis Rs 638 crore for Q1 of previous year. Net interest margin was at 3.82%, up 27 bps from 3.55% a year ago, KVB said.
Asset quality of the bank has improved with gross non-performing assets (NPA) declining to 5.21% (Rs 3,107 crore) as compared to 7.97% (Rs 4,167 crore) in a year-ago period. Similarly, net NPA was at 1.91% (Rs 1,098 crore) as against 3.69% (Rs 1,845 crore) in the year-ago period. Provision coverage ratio stood at 82.74% (72.40% a year ago). Fee-based income has improved by Rs 40 crore to Rs 187 crore from Rs 147 crore during the previous year, it said.
The total business of the bank stood at Rs 1,30,780 crore, registering a growth of 12.05% while credit portfolio grew by 14% with gross advances at Rs 59,612 crore, up from Rs 52,315 crore in the year-ago period.
The jewel loan portfolio registered a 13% growth to Rs 14,873 crore from Rs 13,206 crore. Total deposits grew by 11% to Rs 71,168 crore, up from Rs 64,398 crore, driven by current account savings account (Casa) portfolio and retail term deposits. The Basel III CRAR stood at 19.21% (with CET1 ratio of 17.25%), up from 19.06%, the statement added.