Karur Vysya Bank (kvb) Announces Financial Results For The Quarter And Year Ended 31st March 2024 2h3k1w

Karur Vysya Bank (kvb) Announces Financial Results For The Quarter And Year Ended 31st March 2024.Mr. Ramesh Babu B, Managing Director & CEO, The Karur Vysya Bank said, “The Bank continues its strong growth momentum, consistency in Asset quality and profitability. Credit cost for FY24 was at a new low at 65 bps. We are now on the path to sustained growth momentum with various enablers in place.”

We have performed consistently to deliver highest ever annual Net profit of ₹1,605cr for the FY 23-24. Credit Cost has improved on the back of continued strong asset quality, with GNPA and NNPA at 1.40% and 0.40% respectively. Broad based business growth coupled with core revenue profile has yielded in higher ROA, currently at 1.63% for the year and 1.76% for the quarter.

Karur Vysya Bank (‘the Bank’) announced its financial results for the Quarter / Year ended March 31, 2024 today. The Bank continues its healthy performance in of profitability as well as asset quality.

BALANCE SHEET:

Balance sheet size as of March 31, 2024 was ₹ 105,585 crore as against ₹ 90,179 crore as of March 31, 2023, a growth of 17.1%.

Total business as on 31st March 2024 stands at ₹ 1,63,536 crore, ing a Y-o-Y growth of  16.1% i.e. up by ₹ 22,730 crore from ₹ 1,40,806 crore as on 31.03.2023.

FINANCIAL PERFORMANCE – FOR THE YEAR (12 MONTHS):

Net profit for the period ed a robust growth of 45.1% and stood at ₹ 1,605 crore from ₹ 1,106 crore during corresponding period of previous year.

PPOP for the period increased by 14.3% is at ₹ 2,829 crore, as compared to ₹ 2,476 crore for corresponding period of the previous year.

Net interest income increased by 13.7% to ₹ 3,809 crore vis-à-vis ₹ 3,349 crore for corresponding period of FY 2023.

Net interest margin stands at 4.19% up by 1 bps as compared to 4.18% during the corresponding period of the previous year.

Cost of deposits has improved by 92 bps and stands at 5.19% as compared to 4.27% during the corresponding period of previous year.

Yield on advances grew to 9.93% by 100 bps as compared to 8.93% during the corresponding period of the previous year.

Commission and fee based income has improved by 16.2% on Y-o-Y basis to ₹ 868 crore from ₹ 747 crore for corresponding period of the previous year.

Operating expenses for the period was ₹ 2,639 crore as compared to ₹ 2,032 crore during the corresponding period of FY 2023.

CAPITAL ADEQUACY:

Capital Adequacy Ratio (CRAR) as per Basel III guidelines was at 16.67% as on March 31, 2024 (18.56% as on March 31, 2023) as against a regulatory requirement of 11.50%. Tier 1 was at 15.46% as of March 31, 2024 compared to 16.79% as of March 31, 2023. Risk-weighted Assets were at ₹ 61,125 crore as on March, 31, 2024 (₹ 49,084 crore as at March 31, 2023).

ASSET QUALITY:

Gross non-performing assets (GNPA) has improved by 87 bps and stands at 1.40% of gross advances as on March 31, 2024 (₹ 1,042 crore) and 2.27% as on March 31, 2023 (₹ 1,458 crore).

Net non-performing assets (NNPA) is below 1% and stands at 0.40% of net advances as on March 31, 2024 (₹ 298 crore), 0.74% as on March 31, 2023 (₹ 468 crore).

Provision Coverage Ratio (PCR) was at 94.85% as at March 31, 2024, as against 92.14% as at March 31, 2023.

NETWORK:

As of March 31, 2024, the Bank’s distribution network stands at 838 branches and 2,262 ATMs / Cash Recyclers as against 799 branches and 2,240 ATMs / Cash Recyclers as of March 31, 2023. 55% of our branches are in semi-urban and rural areas. In addition, we have  156 business correspondents.

Q4 FY 2024 vs. Q4 FY 2023:

  • Net profit for the quarter grew by 34.9% and stood at ₹ 456 crore from ₹ 338 crore during Q4 of previous year.
  • Operating profit for the quarter has grown by 17.3% and stood at ₹ 867 crore as compared to ₹ 739 crore for Q4 of previous year.
  • Net interest income for the quarter improved by 11.5% and stood at ₹ 996 crore for the current quarter vis-à-vis ₹ 893 crore for Q4 of previous year.
  • Net interest margin stands at 4.19% down 18 bps from 4.37% a year ago.
  • Cost of deposits has increased by 75 bps and stands at 5.36% as compared to 4.61% during the previous year.
  • Yield on advances is at 10.08% (9.55% for Q4 of previous year).
  • Non-interest income for the quarter is ₹ 629 crore as compared to ₹ 401 crore a year ago.
  • Fee based income has improved by ₹ 39 crore and stood at ₹ 241 crore from ₹ 202 crore during the previous year.
  • Operating expenses for the quarter was ₹ 757 crore as compared to ₹ 554 crore during Q4 of previous year.
  • Cost to income ratio stands at 46.63% (42.86% for Q4 of previous year).