Table of Content
Karur Vysya Bank Financial Results (Quarter/Nine Months Ended 31st December 2023):
Key Achievements:
The bank achieved a significant milestone by crossing the historical mark of total assets, reaching Rs. 1 Trillion (1,00,000 cr).
Business Growth:
- Total Business witnessed a robust growth of 14.74% YoY and 3.15% for the quarter.
- Deposits displayed a substantial increase of 12.82% YoY and 3.12% for the quarter.
- The Loan Book demonstrated strong growth, expanding by 17.09% YoY and 3.19% for the quarter.
CASA and Profitability:
- CASA experienced a notable rise of 4.70% YoY, with the CASA ratio standing at 31.53%.
- Net Profit surged impressively, showing a remarkable 49.60% YoY increase.
- Net Interest Margin (NIM) stood at 4.20%, exhibiting a YoY growth of 9 basis points.
Income and Ratios:
- Other Income recorded substantial growth, increasing by 35.88% YoY.
- Return on Assets (ROA) for the quarter stood at 1.65%, showcasing the bank’s efficiency.
- Return on Equity (ROE) was noteworthy at 17.20% for the quarter.
Asset Quality and Ratios:
- Gross Non-Performing Assets (GNPA) stood at 1.58%, reflecting the bank’s commitment to sound asset quality.
- Net Non-Performing Assets (NNPA) maintained a low level at 0.42%.
- Provision Coverage Ratio (PCR) stood strong at 94.81%, emphasising prudent risk management.
Capital Adequacy:
- The Capital Adequacy Ratio (CRAR) was robust at 15.39%, ensuring the bank’s financial strength.
- Common Equity Tier 1 (CET 1) ratio stood at 13.87%, further solidifying the capital position.
Additional Read: Q3 Results Dashboard
Karur Vysya Bank Financial Results (Quarter/Nine Months Ended December 31, 2023):
Balance Sheet Overview:
- The bank announced its financial results for the Quarter/Nine Months Ended December 31, 2023, demonstrating robust performance in business growth, profitability, and asset quality.
- The balance sheet size as of December 31, 2023, reached ₹1,02,868 crore, reflecting a substantial growth of 15.56% compared to ₹89,013 crore as of December 31, 2022.
- Total business stood at ₹3,1,58,357 crore as of December 31, 2023, marking a noteworthy year-on-year (YoY) growth of 14.74%, an increase of ₹7,20,344 crore from ₹1,38,013 crore as of December 31, 2022.
- Deposits grew to ₹85,665 crore, showcasing a YoY growth of 12.82%, an uptick of ₹9,733 crore from ₹75,932 crore as of December 31, 2022.
- Total advances as of December 31, 2023, amounted to ₹72,692 crore, witnessing a substantial YoY growth of 17.09%, an increase of ₹10,611 crore from ₹62,081 crore as of December 31, 2022.
Financial Performance – 9M FY 2024:
- Net profit for the nine months exhibited robust growth, surging by 49.61% to ₹1,149 crore from ₹768 crore during the corresponding nine months of the previous year.
- Pre-Provision Operating Profit (PPOP) for the nine months increased by 12.95% to ₹1,962 crore, compared to ₹1,737 crore for the corresponding nine months of the previous year.
- Net interest income increased by 14.54% to ₹2,813 crore, compared to ₹2,456 crore for the corresponding nine months of the previous year.
- Net interest margin stood at 4.20%, up by 9 basis points (bps) compared to 4.11% for the corresponding nine months of the previous year.
- Cost of deposits increased by 98 bps, reaching 5.13%, compared to 4.15% for the corresponding nine months of the previous year.
- Yield on advances grew to 9.88%, showing a significant increase of 116 bps compared to 8.72% for the corresponding nine months of the previous year.
- Commission and fee-based income improved by 14.84% on a YoY basis, reaching ₹627 crore from ₹545 crore for the corresponding nine months of the previous year.
- Operating expenses for the nine months amounted to ₹1,881 crore, compared to ₹1,477 crore during the corresponding nine months of the previous year.
- Cost to income ratio stood at 48.95%, compared to 45.97% for the corresponding nine months of the previous year.
Additional Read: Karur Vysya Bank Share Price
Capital Adequacy:
- Capital Adequacy Ratio (CAR) as per Basel III guidelines was at 15.39% as of December 31, 2023, compared to 17.62% as of December 31, 2022, surpassing the regulatory requirement of 11.50%.
- Tier I was at 13.87% as of December 31, 2023, compared to 15.79% as of December 31, 2022.
- Risk-weighted Assets were at ₹7,59,531 crore as of December 31, 2023, compared to ₹7,46,243 crore as of December 31, 2022.
Asset Quality:
- Gross Non-Performing Assets (GNPA) improved by 112 bps, standing at 1.58% of gross advances as of December 31, 2023 (₹1,152 crore), compared to 2.70% as of December 31, 2022 (₹1,674 crore).
- Net Non-Performing Assets (NNPA) remained below 1%, standing at 0.42% of net advances as of December 31, 2023 (₹305 crore), against 0.90% as of December 31, 2022 (₹550 crore).
- Provision Coverage Ratio (PCR) was at 94.81% as of December 31, 2023, compared to 90.87% as of December 31, 2022.
Network and Distribution:
- As of December 31, 2023, the bank’s distribution network comprised 831 branches, 1 Digital Banking Unit, and 2,251 ATMs/Cash Recyclers, compared to 792 branches and 2,233 ATMs/Cash Recyclers as of December 31, 2022. 56% of the branches are in semi-urban and rural areas, and there are 150 business correspondents.
Financial Performance – Q3 FY 2024 vs. Q3 FY2023:
- Net profit for the quarter displayed robust growth, surging by 42.56% to ₹412 crore from ₹289 crore during the corresponding quarter of the previous year.
- PPOP for the quarter marginally decreased by 1.89%, standing at ₹676 crore, compared to ₹689 crore for the corresponding quarter of the previous year.
- Net interest income increased by 12.60% to ₹1,001 crore, compared to ₹889 crore for the corresponding quarter of the previous year.
- Net interest margin stood at 4.32%, compared to 4.36% for the corresponding quarter of the previous year.
- Cost of deposits increased by 99 bps, reaching 5.25%, compared to 4.26% for the corresponding quarter of the previous year.
- Yield on advances grew by 102 bps to 10.16%, compared to 9.14% for the corresponding quarter of the previous year.
- Commission and fee-based income improved by 22.16% on a YoY basis, reaching ₹326 crore from ₹185 crore for the corresponding quarter of the previous year.
- Operating expenses for the quarter amounted to ₹683 crore, compared to ₹518 crore during the corresponding quarter of the previous year.
- Cost to income ratio stood at 50.27%, compared to 42.90% for Q3 of the previous year.
About Karur Vysya Bank
Karur Vysya Bank, is an institution steeped in a tradition of 107 years, yet dynamic enough to embrace the evolving landscape of the banking industry. The bank’s vision is to be the preferred choice of stakeholders and deliver value by seamlessly integrating technology with tradition. Karur Vysya Bank’s mission is to provide a superior banking experience by leveraging technology to offer a comprehensive range of financial products under one roof. These services are made easily accessible to customers through both physical and digital channels.
Founded in 1916 in Karur, a small textile town with a rich agricultural heritage, Karur Vysya Bank emerged through the vision of two eminent individuals, Sri M.A. Venkatarama Chettiar and Sri Athi Krishna Chettiar. What began as a venture with a modest seed capital of Rs. 1.20 lakh has blossomed into a leading financial institution. Today, the bank proudly serves millions of customers by providing a diverse array of financial services, reflecting its commitment to growth and customer satisfaction.
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Sources: https://www.bseindia.com/xml-data/corpfiling/AttachLive/389FFF36-84BF-4D55-AE78-ECAA50DB4788-084853.pdf
