Karur Vysya Bank's Q2 Net Up 51.4% To Rs 378 Cr

Karur Vysya bank, on Monday, reported a quarterly net profit of Rs 378 crore in Q2 FY24 up by 5.4 per cent at quarter-on-quarter (QoQ) basis and 51.4 per cent at year-on-year(YoY) basis.

The company's net interest income stood at Rs 915 crore in Q2 FY24, showing a nominal growth of 2.1 per QoQ and up by 11.5 per cent YoY.

Gross Deposits showed growth and stood at Rs 83,068 crore in Q2 FY24 up by 2.9 per cent QoQ and up by 12.8 per cent YoY. Gross Advances stood at Rs 70,448 crore in Q2 FY24, 2.6 per cent up at QoQ and 13.9 per cent up at YoY basis.

The bank showed a decline in both Gross NPA and Net NPA. Net NPA stood at 0.47 per cent in Q2 FY24 which is down by 12 bps QoQ and 89 bps down at YoY basis. Gross NPA stood at 1.73 per cent in Q2 FY24, 26 bps down at QoQ and 224 bps YoY basis.

Capital Adequacy Ratio(CRAR) decreased and stood at 16.84 per cent in Q2 FY24 compared to 17.67 per cent in Q1 FY24 and 18.07 per cent in Q2 FY23. Though the bank faced some NIM pressure of about 12 bps, the profitability was aided by certain recoveries which led to growth in the bank's profits.

“The bank’s asset quality remain stable, with negative net slippages mainly due to healthy account recoveries from the written-off accounts," the bank said.

Accordingly, the bank has guided Net Interest Margin(NIM) at 3.8 per cent in Q3 FY24, assuming there won’t be any change in the interest rate.

"Though the deposit growth was in line with the guidance given, the contribution of CASA to the total deposits was sluggish. To Overcome this, the bank has primarily hired 2,027 people as a pure sales team for CASA,” the report added. 

CASA stood at 32.30 per cent in Q2 FY24 compared to 32.90 per cent in Q1 FY24.

"The bank has guided that it will be able to maintain its gross NPA below 2 per cent in the forthcoming quarters," the report highlighted.