Karur Vysya Bank Q2 Results: Net Profit Up 25.13% To Rs 473 Cr; NII Jumps 15.85%

The financial results of Karur Vysya Bank for the quarter and half year that ended on September 30, 2024, were released today. The bank keeps up its strong performance in terms of asset quality, profitability, and business expansion.

The quarter's net profit climbed significantly by 25.13% to Rs 473 crore from Rs 378 crore in the same quarter the previous year. When compared to the same quarter last year, when net interest income was Rs 915 crore, it climbed by 15.85% to Rs 1,060 crore in Q1FY25. The net interest margin is at 4.11%, up from 4.07% during the same quarter last year.

Operating expenses for the bank were Rs 716 crore for the quarter, up from Rs 616 crore in the same period last year. The cost of deposits is now 5.56%, up 40 basis points over the equivalent quarter last year when it was 5.16%. The yield on advances climbed by 32 basis points to 10.08% from 9.76% in the same quarter last year. In Q1FY25, the cost-to-income ratio was 46.72%, compared to 49.14% in Q2 of the prior year.

The gross non-performing assets (GNPA) of Karur Vysya Bank have dropped by 63 basis points (bps) and are now 1.10 per cent of gross advances as of September 30, 2024, or Rs 886 crore, and 1.73% as of September 30, 2023, or Rs 1,219 crore. The percentage of net non-performing assets (NNPA) is less than 1%; as of September 30, 2024, it was 0.28% of net loans, or Rs 219 crore, and 0.47% as of September 30, 2023, or Rs 324 crore. As of September 30, 2024, the Provision Coverage Ratio (PCR) was 96.09%, compared to 94.49% in the same period in 2023.

The bank's balance sheet size climbed by 14.36% to Rs 112,573 crore on September 30, 2024, from Rs 98,434 crore on the same day in 2023. According to Karur Vysya Bank, its total business as of September 30, 2024, was Rs 1,76,138 crore, representing a YoY rise of 14.74%, or a growth of Rs 22,622 crore from Rs 1,53,516 crore as of September 30, 2023. Total deposits as of September 30, 2024, are Rs 95,839 crore, representing a YoY increase of 15.37%, or a growth of Rs 12,771 crore from September 30, 2023, of Rs 83,068 crore.

As of September 30, 2024, the bank had total advances of Rs 80,299 crore, up Rs 9,851 crore from Rs 70,448 crore on September 30, 2023, representing a YoY rise of 13.98%.
Mr. Ramesh Babu B, Managing Director & CEO of Karur Vysya Bank said, "We have achieved another strong quarter of performance, guided by our three key metrics: growth, profitability, and asset quality. The bank's performance indicators align with our guidance, demonstrating consistent and steady growth."

"It's encouraging to see inclusive growth in our RAM (Retail, Agriculture, and MSME) verticals, continuing the strong start we made last quarter. I am confident that the same will be maintained in the ensuing quarters. Our total business crossed Rs 1,76,138 cr. The inclusive growth from all the business segments has supported for reaching net profit of Rs 932 cr for the half year," he further added.

The distribution network of the bank comprises 841 branches, 1 digital banking unit, and 2,208 ATMs/cash recyclers as of September 30, 2024, compared to 824 branches, 1 digital banking unit, and 2,244 ATMs/cash recyclers on September 30, 2023.