Chennai 

Tamil Nadu-based Karur Vysya Bank has posted a 105 per cent rise in net profit during the fourth quarter of the financial year, ended in March 2022, to Rs 213 crore as against Rs 104 crore during the January to March quarter of 2020-21.

The operating profit for the quarter stood at Rs 441 crore – up by 118 per cent from Rs 202 crore for Q4 of the previous year. Net interest income for the quarter was higher at Rs 710 crore for the March 2022 quarter, compared to Rs 613 crore for Q4 of FY 2020-21.

“The main reason for our growth is inclusive contribution from all verticals. Disbursement under each vertical has gone up. Our net NPA came down from 3.41 per cent in March 2021 to 2.28 per cent in March 2022. We have given focus for recovery. Our SMA (special mention accounts), which used to be around 3-3.5 per cent of the portfolio is now at 0.82 per cent,” said B. Ramesh Babu, managing director and chief executive officer of the bank.

During the quarter under review, the cost of deposits has improved by 51 basis points and stands at 4.12 per cent as compared to 4.63 per cent during the previous year. Net interest margin for the quarter stands at 3.79 per cent versus 3.46 per cent for Q4 of 2020-21.

Babu said that the bank is expecting a 12 per cent growth on advances and 15 per cent on the CASA front during the current financial year. “We want to bring down the NPA also progressively from 2.28 per cent to below 1 per cent,” he added.

During the financial year 2021-22, net profit grew by 87 per cent to Rs 673 crore up from Rs. 359 crore during previous year. Operating profit for the year was Rs 1,630 crore as compared to Rs 1,292 crore for FY 2020-21. Net interest income for the year stood at Rs.2,715 crore as compared to Rs. 2,360 crore for FY 2020-21.