Karur Vysya Bank Q3 net plummets 70% to Rs 21 crore

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Published: February 13, 2019 3:36:24 AM

The bank has witnessed asset quality weakening further in December quarter with the gross non-performing assets (NPA) as of December 2018 increasing to Rs 4,056 crore (8.49%) compared to Rs 2, 663 crore (5.95%).

The bank has witnessed asset quality weakening further in December quarter with the gross non-performing assets (NPA) as of December 2018 increasing to Rs 4,056 crore (8.49%) compared to Rs 2, 663 crore (5.95%).

Private sector lender Karur Vysya Bank (KVB) on Tuesday reported a sharp 70.4% drop in its net profit at Rs 21 crore for the third quarter compared to Rs 71 crore in the corresponding period of previous fiscal, owing to higher provisioning towards the sticky assets.
In the second quarter, the bank had clocked a net profit of Rs 84 crore. The bank has earned a total income of Rs 1,703 crore in Q3 against Rs 1,647 crore, registering a growth of 3.4%.

The bank has witnessed asset quality weakening further in December quarter with the gross non-performing assets (NPA) as of December 2018 increasing to Rs 4,056 crore (8.49%) compared to Rs 2, 663 crore (5.95%).

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Similarly, the net NPA has seen a surge to Rs 2,296 crore (4.99%) against Rs 1,699 crore (3.88%). Provision coverage ratio was at 56.09%. In absolute terms, provisions and contingencies stood at Rs 400.4 crore in the quarter year-on-year compared to Rs 325 crore, registering an increase of 23.3%.

Net interest income for the quarter grew Rs 20 crore to Rs 581 crore from Rs 562 crore during the Q3 of FY18.
Non-interest income increased by Rs 35 crore (16%) for the quarter to Rs 260 crore. Core fee income for the quarter grew by Rs 8 crore to Rs 161 crore, marking a growth of 5%. Net interest margin stood at 3.6% against 3.71%.

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