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Friday, 28 July 2017

Karur Vysya Bank Q1 profit growth to 1%

Private sector lender Karur Vysya Bank's profit growth limited to 1.1 percent in June quarter due to higher provisions, though there was sharp growth in other income and operating income.

Profit in Q1FY18 increased to Rs 148 crore from Rs 146.3 crore in year-ago quarter while net interest income jumped 11.9 percent to Rs 538.6 crore year-on-year.

Asset quality deteriorated further in the quarter ended June 2017, with gross non-performing assets (NPA) risnig 69 basis points sequentially to 4.27 percent and net NPA up 32 bps to 2.85 percent.

In absolute terms, gross NPAs jumped nearly 22 percent quarter-on-quarter to Rs 1,807 crore and net NPA increased 15.1 percent to Rs 1,189 crore in June quarter.

Provisions for bad loans increased sharply by 79.4 percent year-on-year and 7.3 percent quarter-on-quarter to Rs 233.4 crore in the quarter gone by.

Numbers were slightly lower than estimates. Profit was estimated at Rs 153.7 crore and net interest income at Rs 562.9 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

Other income (non-interest income) grew by 45.6 percent to Rs 236.3 crore and operating profit jumped 29.8 percent to Rs 449.4 crore compared with same quarter last year.

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