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Karur Vysya Bank has reported 21% growth in net profit at Rs 496.03 crore for the quarter ended December 2024 (Q3FY2025). The bank has posted 8% growth in net interest income (NII), while the core fee income of the bank rose 4% in Q3FY2025. The Net Interest Margin (NIM) of the bank declined to 4.03% in Q3FY2025 compared to 4.32% in the corresponding quarter of previous year. On business front, the bank as has posted 15% growth in business with strong 14% surge in loan book. The asset quality of the bank has continued to improve in Q3FY2025. Bank has reduced the credit to deposit ratio to 83.5% at end December 2024 from 84.9% at end December 2023. CASA ratio of the bank has declined to 28.4% at end December 2024 from 31.5% at end December 2023. Asset quality improves: The bank has continued to improve asset quality in Q3FY2025. The fresh slippages of loans declined to Rs 139 crore in Q3FY2025 compared with 181 crore in previous quarter and Rs 197 crore in the corresponding quarter last year. Segment wise, retail segment contributed slippages of Rs 52 crore, agriculture Rs 10 crore, MSME Rs 76 crore and corporate Rs 1 crore. The recoveries and upgradations of NPAs was at Rs 91 crore and the write-off of loans was at Rs 242 crore in Q3FY2025. The standard restructured loan book of the bank declined to at Rs 608 crore end December 2024. Provision coverage ratio was robust at 96.87% at end December 2024 compared to 96.09% a quarter ago and 94.81% a year ago. The capital adequacy ratio of the bank stood at 15.9% with Tier I ratio at 15.0% at end December 2024. The risk weighted assets of the bank has increased 9% YoY to Rs 64755 crore end December 2024, | Asset Quality Indicators: Karur Vysya Bank | | ' | Dec/24 | Sep/24 | Jun/24 | Mar/24 | Dec/23 | Variation | | QoQ | YTD | YoY | | Gross NPA (Rs Crore) | 690.92 | 885.61 | 1024.53 | 1041.64 | 1151.86 | -22 | -34 | -40 | | Net NPA (Rs Crore) | 166.69 | 219.22 | 293.66 | 297.97 | 305.27 | -24 | -44 | -45 | | % Gross NPA | 0.83 | 1.10 | 1.32 | 1.40 | 1.58 | -27 | -57 | -75 | | % Net NPA | 0.20 | 0.28 | 0.38 | 0.40 | 0.42 | -8 | -20 | -22 | | % PCR | 96.87 | 96.09 | 94.91 | 94.85 | 94.81 | 78 | 202 | 206 | | % CRAR - Basel III | 15.91 | 16.28 | 16.47 | 16.67 | 15.39 | -37 | -76 | 52 | | % CRAR - Tier I - Basel III | 15.03 | 15.39 | 15.58 | 15.46 | 13.87 | -36 | -43 | 116 | | Variation in basis points for figures given in percentages and in % for figures in Rs crore | Business Highlights: Healthy business growth: The business of the bank has increased 15% YoY to Rs 181993 crore end December 2024, driven by 14% surge in advances to Rs 82838 crore. Deposits increased 16% to Rs 99155 crore at end December 2024. CASA deposits ratio declines: The CASA deposits of the bank increased 4% YoY to Rs 28167 crore at end December 2024. The current account deposits increased 4% to Rs 8828 crore, while saving account deposits moved up 5% to Rs 19339 crore end December 2024. The CASA ratio eased to 28.4% at end December 2024 compared to 31.5% at end December 2023, while declined from 29.5% a quarter ago. The term deposits have increased 21% to Rs 70988 crore end December 2024. Strong loan growth: Advances growth was driven by retail loans rising 20% YoY to Rs 20476 crore at end December 2024, while credit to agriculture increased 17% to Rs 19705 crore and MSME 22% to Rs 29824 crore at end December 2024. The corporate credit has declined 11% to Rs 12833 crore end December 2024. Investment book of the bank increased 18% YoY to Rs 25308 crore at end December 2024. The SLR book moved up 20% to Rs 22064 crore, while non SLR book rose 8% to Rs 3244 crore at end December 2024. The AFS book jumped 24% to Rs 6140 crore, while HTM book increased 16% to Rs 19168 crore at end December 2024. The duration of the AFS investment portfolio stood at 3.01 years end December 2024 compared with 2.15 years at end December 2023. Margins decline: The bank has showed 41 bps YoY jump in cost of deposits to 5.66%, while yield on advances was flat at 10.16% in Q3FY2025. Thus, the NIM has declined 29 bps YoY and 8 bps qoq to 4.03% in Q3FY2025. Branch expansion: The bank has added 25 branches and reduced 11 ATMs in Q3FY2025, taking overall tally to 866 branches and 2197 ATM`s end December 2024. Book value of the bank stood at Rs 141.5 per share at end December 2024, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 138.7 per share at end December 2024. Quarterly Performance NII growth ease, as NIM declines: Bank has recorded 16% increase in the interest earned at Rs 2486.01 crore, while interest expenses increased 24% to Rs 1407.22 crore in Q3FY2025. NII improved 8% to Rs 1078.79 crore in the quarter ended December 2024. Strong growth in recoveries and other income: Bank has posted moderate 4% growth in core fee income to Rs 234 crore, while the recoveries and other income jumped 77% to Rs 233 crore, leading to 31% surge in the overall non-interest income to Rs 467.43 crore in the quarter ended December 2024. Expenses ratio improves: The operating expenses of the bank increased 7% to Rs 730.95 crore, as other expenses moved up 16% to Rs 357.13 crore, while employee expenses were flat at Rs 373.82 crore in Q3FY2025. Cost to income ratio improved to 47.3% in Q3FY2025 compared with 50.3% in Q3FY2024, helping the Operating Profit to increase 21% to Rs 815.27 crore. Provisions and contingencies decline: The bank has showed 2% decline in provisions to Rs 147.44 crore. The loan loss provisions declined 7% to Rs 100 crore, while there was write back of investment provisions of Rs 4 crore. However, the standard asset and prudential provisions increased 76% to Rs 51 crore. Effective tax rate increased to 25.7% in Q3FY2025 from 21.8% in Q3FY2024. Net Profit rose by 21% YoY to Rs 496.03 crore during quarter ended December 2024. Financial Performance 9MFY2025: Bank has posted 24% increase in net profit to Rs 1428.28 crore in the nine months ended December 2024 (9MFY2025). The net interest income increased 12% to Rs 3163.09 crore, while non-interest income moved up 29% to Rs 1327.79 crore, pushing up net total income by 17% to Rs 4490.88 crore in 9MFY2025. The operating expenses increased 12% to Rs 2113.52 crore, while provision and contingencies rose 6% to Rs 460.21 crore, allowing profit before tax to increase 26% to Rs 1917.15 crore in 9MFY2025. The cost-to-income ratio improved to 47.1% in 9MFY2025 compared to 48.9% in 9MFY2024. An effective tax rate rose to 25.5% in 9MFY2025 compared to 24.8% in 9MFY2024. The net profit has increased 24% to Rs 1428.28 crore in 9MFY2025. | Karur Vysya Bank: Results | | Particulars | 2412 (3) | 2312 (3) | Var % | 2412 (9) | 2312 (9) | Var % | 2403 (12) | 2303 (12) | Var % | | Interest Earned | 2486.01 | 2139.38 | 16 | 7154.54 | 6019.37 | 19 | 8203.94 | 6516.55 | 26 | | Interest Expended | 1407.22 | 1138.09 | 24 | 3991.45 | 3205.63 | 25 | 4394.74 | 3167.74 | 39 | | Net Interest Income | 1078.79 | 1001.29 | 8 | 3163.09 | 2813.74 | 12 | 3809.20 | 3348.81 | 14 | | Other Income | 467.43 | 357.79 | 31 | 1327.79 | 1029.84 | 29 | 1658.69 | 1158.94 | 43 | | Net Total Income | 1546.22 | 1359.08 | 14 | 4490.88 | 3843.58 | 17 | 5467.89 | 4507.75 | 21 | | Operating Expenses | 730.95 | 683.18 | 7 | 2113.52 | 1881.35 | 12 | 2638.75 | 2031.96 | 30 | | Operating Profits | 815.27 | 675.90 | 21 | 2377.36 | 1962.23 | 21 | 2829.14 | 2475.79 | 14 | | Provisions & Contingencies | 147.44 | 149.71 | -2 | 460.21 | 435.54 | 6 | 728.95 | 1038.93 | -30 | | Profit Before Tax | 667.83 | 526.19 | 27 | 1917.15 | 1526.69 | 26 | 2100.19 | 1436.86 | 46 | | Provision for tax | 171.80 | 114.56 | 50 | 488.87 | 377.98 | 29 | 495.38 | 330.77 | 50 | | PAT | 496.03 | 411.63 | 21 | 1428.28 | 1148.71 | 24 | 1604.81 | 1106.09 | 45 | | EPS*(Rs) | 24.6 | 20.5 | ' | 23.7 | 19.0 | ' | 19.9 | 13.7 | ' | | Adj BV (Rs) | 138.7 | 114.4 | ' | 138.7 | 114.4 | ' | 120.2 | 100.0 | ' | | * Annualized on current equity of Rs 160.99 crore. Face Value: Rs 2, Figures in Rs crore | | Source: Capitaline Corporate Database | Powered by Capital Market - Live News
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