Karur Vysya Bank Reports Robust Q2 FY25 Results: Net Profit Rises 25% to ₹473 Crore, NII Surges 15.85%

Karur Vysya Bank has reported strong financial results for the quarter and half-year ending September 30, 2024. Here are the key highlights:

• Net Profit: The bank’s net profit rose by 25.13% to ₹473 crore compared to ₹378 crore in the same quarter last year.
• Net Interest Income (NII): NII increased by 15.85%, reaching ₹1,060 crore from ₹915 crore in Q2 of the previous fiscal year.
• Net Interest Margin (NIM): The net interest margin improved to 4.11%, up from 4.07% year-over-year.
• Operating Expenses: Operating expenses were reported at ₹716 crore, up from ₹616 crore in the same period last year.
• Cost of Deposits: The cost of deposits rose to 5.56%, an increase of 40 basis points from 5.16% a year ago.
• The yield on Advances: Yield on advances improved by 32 basis points to 10.08% from 9.76% in the same quarter last year.
• Cost-to-Income Ratio: This ratio decreased to 46.72%, down from 49.14% a year earlier.
• Asset Quality:
  • Gross Non-Performing Assets (GNPA): GNPA declined to 1.10% of gross advances (₹886 crore), down from 1.73% (₹1,219 crore) last year.
  • Net Non-Performing Assets (NNPA): NNPA was 0.28% of net loans (₹219 crore), compared to 0.47% (₹324 crore) the previous year.
  • Provision Coverage Ratio (PCR): PCR stood at 96.09%, up from 94.49% last year.
• Balance Sheet Size: The bank’s balance sheet grew by 14.36% to ₹112,573 crore, compared to ₹98,434 crore a year ago.
• Total Business: Total business reached ₹1,76,138 crore, marking a 14.74% year-over-year growth.
• Total Deposits: Deposits grew by 15.37% to ₹95,839 crore, up from ₹83,068 crore last year.
• Total Advances: Advances rose by 13.98% to ₹80,299 crore, up from ₹70,448 crore last year.

The Managing Director & CEO, Mr. Ramesh Babu B, expressed confidence in the bank’s performance and growth in the retail, agriculture, and MSME sectors. He highlighted that the bank achieved a net profit of ₹932 crore for the half-year period.

The bank’s distribution network included 841 branches, 1 digital banking unit, and 2,208 ATMs/cash recyclers as of September 30, 2024.

Disclaimer: The information provided in this report is for informational purposes only and should not be considered financial advice. While every effort has been made to ensure the accuracy of the data presented, the results may be subject to revisions and may vary based on future performance. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The sources referenced are believed to be reliable, but the author does not guarantee their accuracy or completeness.