The results of the Karur Vysya Bank for the first quarter of Financial Year 2020 have been declared and the bank has seen a 45% increase in its profits, net profits standing at Rs. 105.50 crores. The quarter ended on June 30.
Karur Vysya Bank: A Report
In the previous financial year’s last quarter, which ended on March 31, the bank had reported a net profit increase of Rs. 72.92 crores.
However, KVB reported that it had seen a reduction in its total income when compared with its performance in the first quarter of FY19. While the income in FY19Q1 was Rs. 1762.37 crores, the income in the same period of this financial year was Rs. 1693.23.
The retail income had fallen from Rs. 981.33 crores to Rs. 929.80 crores, and the interest income went down from Rs. 1492.53 crores to Rs. 1376.10 crores.
The asset quality had also seen an improvement. The NPAs (Non-performing assets) were recorded at 8.34%, as compared to 9.17% the previous year. The gross NPAs had fallen to Rs. 4055.66 crores from Rs. 4510.83 crores.
The capital adequacy ratio had also seen an improvement by 18.14%, while in the previous year this number was 15.99%. The bad loans, however, had increased to 337.57 crores from 329.97 crores.
The bank had reported that it had seen a reduction in income due to the government measures and the nationwide lockdown to mitigate the effects of the COVID-19 pandemic.
KVB had reported an aggregate provision of Rs. 120.01 crores on June 30, 2020, with an additional provision recorded as Rs. 31.12 crores. These provisions were more than the RBI guideline requirements. The provision coverage ratio stood at 72.74% as opposed to the previous year’s 59.05%.
The shares closed at Rs. 34.40 on the BSE with an increment of 10.97%