Karur Vysya Bank announced financial Q4 results of FY 2022-23

Highlights:

• Total Business up by 12.3% YOY and 2.0% QOQ.
• Deposits up by 11.9% and 1.0% QOQ.
• Loan Book  grew at 16% YOY before technical  write off 
• CASA grew 6.5% YOY, CASA ratio stood at 33.2%. 
• PPOP up by 51.9% YOY, 67.6% QOQ.
• NIM at 4.2%, up by 46 bps YOY and 4.4% up by 55 bps QOQ and; 
• Other Income up by 95.6% QOQ and 50.7% YOY. 
• Cost to Income Ratio for the quarter it is 42.9% and stood at 45.1% YTD.
• ROA at 1.50% for the quarter and 1.27% YTD. 
• ROE at 16.04% for the quarter and 13.13% YTD. 
• GNPA at 2.27%, NNPA at 0.74%. 
• Capital adequacy ratio (CRAR) stood at 18.56% with CET 1 ratio of 16.79%.

NEW DELHI- Karur Vysya Bank (‘the Bank’) announced its financial results for the Quarter / Year ended March 31, 2023 on 15 May 2023. The Bank continues its healthy performance in terms of profitability as well as asset quality.
 

Mr. Ramesh Babu B, Managing Director & CEO, The Karur Vysya Bank said, “As a Bank, we have traversed a phenomenal distance in an extremely challenging environment. We have transformed ourselves in line with the evolving business scenario to become more agile, more relevant and totally dedicated to the needs of our customers. 

We have performed consistently to deliver highest ever annual Net profit of rs. 1,106cr for the FY 22-23. Credit Cost has improved on the back of continued strong asset quality, with GNPA and NNPA at 2.27% and 0.74% respectively. Broad-based business growth coupled with core revenue profile has yielded in higher ROA, currently at 1.27% for the year and 1.50% for the quarter. 
Inspired by this experience, the team is hopeful of continuing its growth trajectory in the coming year also”. 

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BALANCE SHEET:

The balance sheet size as of March 31, 2023 was rs.  90,179 crore as against rs. 80,071 crore as of March 31, 2022, a growth of 12.6%.

Total business as on 31st March 2023 stands at rs. 1,40,806 crore, registering a Y-o-Y growth of  12.3% i.e. up by rs. 15,444 crore from rs.1,25,362 crore as of 31.03.2022. 

FINANCIAL PERFORMANCE – FOR THE YEAR (12 MONTHS):

Net profit for the period registered a robust growth of 64.3% and stood at rs.  1,106 crore from rs. 673 crore during corresponding period of previous year.

PPOP for the period increased by 51.9% is at rs.  2,476 crore, as compared to rs.  1,630 crore for the corresponding period of the previous year.

Net interest income increased by 23.3% to rs.  3,349 crore vis-à-vis rs.  2,716 crore for the corresponding period of FY 2022. 

Net interest margin stands at 4.18% up by 46 bps as compared to 3.72% during the corresponding period of the previous year.

Cost of deposits has improved by 4 bps and stands at 4.27 % as compared to 4.31% during the corresponding period of previous year.

Yield on advances grew to 8.93% by 37 bps as compared to 8.56% during the corresponding period of the previous year.

Commission and fee based income has improved by 17.8% on Y-o-Y basis to rs. 747 crore from rs.  634 crore for corresponding period of the previous year.

Operating expenses for the period was ? 2,032 crore as compared to rs. 1,854 crore during the corresponding period of FY 2022.

CAPITAL ADEQUACY:

Capital Adequacy Ratio (CRAR) as per Basel III guidelines was at 18.56% as on March 31, 2023 (19.21% as on March 31, 2022) as against a regulatory requirement of 11.50%. Tier 1 was at 16.79% as of March 31, 2023 compared to 17.27% as of March 31, 2022. Risk-weighted Assets were at rs.  49,084 crore as on March, 31, 2023 (rs. 42,212 crore as at March 31, 2022). 

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ASSET QUALITY:

Gross non-performing assets (GNPA) has improved by 376 bps and stands at 2.27% of gross advances as on March 31, 2023 (rs.  1,458 crore) and 6.03% as on March 31, 2022 (rs.  3,431 crore). 

Net non-performing assets (NNPA) is below 1% and stands at 0.74% of net advances as on March 31, 2023 (rs. 468 crore), 2.31% as on March 31, 2022 (rs. 1,261 crore).

Provision Coverage Ratio (PCR) was at 92.14% as at March 31, 2023, as against 80.27% as at March 31, 2022. 

NETWORK:

As of March 31, 2023, the Bank’s distribution network stands at 799 branches and 2,240  ATMs / Cash Recyclers as against 789 branches and 2,223 ATMs / Cash Recyclers as of March 31, 2022. 55% of our branches are in semi-urban and rural areas. In addition, we have 150 business correspondents.

Q4 FY 2023 vs. Q4 FY 2022:

• Net profit for the quarter grew by 58.7% and stood at  rs.  338 crore from rs. 213 crore during Q4 of previous year.
• Operating profit for the quarter has grown by 67.6% and stood at rs.  739 crore as compared to rs.  441 crore for Q4 of previous year.
• Net interest income for the quarter improved by 25.8% and stood at ? 893 crore for the current quarter vis-à-vis rs. 710 crore for Q4 of previous year. 
• Net interest margin stands at 4.37% up 55 bps from 3.82% a year ago.
• Cost of deposits has increased by 48 bps and stands at 4.61% as compared to 4.13% during the previous year.
• Yield on advances is at 9.55% (8.37% for Q4 of previous year).
• Non-interest income for the quarter is rs.  401 crore as compared to rs. 205 crore a year ago. 
• Fee based income has improved by rs. 20 crore and stood at rs.202 crore from rs.  182 crore during the previous year.
• Operating expenses for the quarter was rs.  555 crore as compared to rs. 474 crore during Q4 of previous year. 
• Cost to income ratio stands at 42.86% (51.80% for Q4 of previous year).

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