MUMBAI - Karur Vysya Bank (KVB), a private sector lender, has announced a substantial increase in its net profits for the third quarter of the fiscal year 2023-24. The bank's net profits soared to Rs 412 crore ($54.94M), marking a significant rise from the Rs 289 crore ($38.5M) reported in the corresponding quarter of the previous fiscal year. This represents a robust 43% year-on-year increase, despite a minor reduction in operating profit which fell by 2% to ₹676 crore from last year’s ₹689 crore.
The bank's financial performance also reflected positively in its net interest income, which is the difference between the revenue generated from a bank's assets and the expenses associated with paying out its liabilities. KVB's net interest income for the quarter grew by 13%, reaching Rs 1,001 crore ($133M), albeit with a slight decrease in net interest margin to 4.32%. Provisions for contingencies were significantly lower at ₹150 crore compared to the previous year’s ₹364 crore and slippages also decreased to just ₹23 crore. However, operating expenses saw a sharp rise of 32%, totaling ₹683 crore.
This financial update from Karur Vysya Bank indicates a robust growth trajectory for the lender, as it continues to build on its financial metrics. The bank's progress is seen as a positive sign amidst the competitive banking landscape in India.
Looking at the nine-month period ending December, Karur Vysya Bank's net profit jumped dramatically by half to ₹1,149 crore over the same period last year. The bank’s balance sheet showed a robust growth of 16% year-over-year with a size of ₹1,02,868 crore. Gross NPA improved from September’s figure of 1.73% down to an impressive low of 1.58%, and Net NPA continued the trend from the preceding quarter's figure of 0.47%, decreasing further to just 0.42%. Deposit growth remained strong at a rate of 13%, although there was a slight decrease in CASA share; on the lending side, advances across various sectors showed healthy increases.
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