Private sector lender Karur Vysya Bank on Monday registered a 56.2% increase in its net profit at `289 crore for the third quarter of FY’23 as compared with `185 crore in the same period last fiscal, riding on better asset quality and rise in income.
The total income of the bank stood at`2,012 crore as against `1,600 crore, logging a growth of around 26%. The net interest income of the bank improved by 29.4% (Rs 203 crore) to `889 crore for the current quarter vis-à-vis `686 crore for Q3 of previous year.
Net interest margin (NIM) stood at 4.32%, up 64 bps from 3.68%, reported in last fiscal. Cost of deposits has increased by 4 bps and stands at 4.26% as compared with 4.22% during the previous year.
Non-interest income was at `317 crore against`196 crore recorded a year ago in the same period.
The bank’s fee based income has improved by `22 crore and stood at Rs 184 crore from `162 crore during the previous year.The bank’s gross non-performing assets (GNPA) improved by 431 bps and stood at 2.66% of gross advances as on December 31 (`1,674 crore) as against 6.97% as on December 31, 2021 ( `3,888 crore).
Net non-performing assets (NNPA) were below 1% and stood at 0.89% of net advances as on December 31 (`550 crore) against 2.55% as on December 31, 2021 (`1,356 crore).
Provision coverage ratio (PCR) was at 90.9% as against 78.8%, said a bank statement.
The board of directors of the bank has approved the proposal for re-appointment of B Ramesh Babu as the MD & CEO for a further period of three years, with effect from July 29, 2023, subject to the approval of the Reserve Bank of India and shareholders. His present term will end on July 28.