Karur Vysya Bank on Monday reported more than doubling its net profit to Rs 229 crore in the June quarter, led by higher interest income and improved interest margin.
The bank had posted a net profit of Rs 109 crore in the year-ago period.
Its net interest income grew 17 per cent to Rs 746 crore in the first quarter of the current fiscal. The same stood at Rs 638 crore in the year-ago period, Karur Vysya Bank said in a release on Monday.
Net interest margin of the bank rose to 3.82 per cent in the latest quarter under review from 3.55 per cent in the same period a year ago.
Total income rose to Rs 1,672.60 crore in Q1FY23 as against Rs 1,579.26 crore in Q1FY22.
At the end of June, Gross Non Performing Assets (NPAs) fell to 5.21 per cent of the gross advances from 7.97 per cent at the end of June 2021.
Net NPAs or bad loans declined to 1.91 per cent from 3.69 per cent during the same period.
Provisions for bad loans and contingencies were restricted to Rs 154.64 crore in the June quarter. This is a decline of over 37 per cent from Rs 247.37 crore in the year-ago period.
Among other key metrics, the bank’s cost of deposits improved 44 basis points to 4.09 per cent.
According to the release, the bank’s jewel loan portfolio registered a growth of 13 per cent to Rs 14,873 crore at the end of June this year.
Total deposits grew 11 per cent to Rs 71,168 crore.
Shares of the bank gained nearly 3 per cent to close at Rs 55.35 apiece on the BSE.
