NEW DELHI: Karur Vysya Bank's net profit declined by over 38 per cent to Rs 71.49 crore for the quarter ending December due to a rise provisions for bad loans.
The private sector lender had registered a net profit of Rs 115.76 crore in the corresponding October-December period of previous fiscal 2016-17.
The bank set aside Rs 324.70 crore to cover bad loans and contingencies, nearly double the amount of Rs 157.50 crore its had parked in the same period of previous fiscal, according to a regulatory filing.
Its gross bad loans spiked to 5.94 per cent of the gross loans at the end of December 2017, as against 2.66 per cent in the year ago period. In absolute value, it amounted to Rs 2,663.32 crore as compared with Rs 1,022.24 crore.
Net NPAs also turned up at 3.88 per cent by the end of December (Rs 1,698.92 crore), against 1.68 per cent (Rs 637.52 crore) year ago.
Total income of the bank rose marginally to Rs 1,647.17 crore in the October-December period of 2017-18 as against Rs 1,581.26 crore in year ago same period.
Provision coverage ratio --the percentage of bad asset that a bank has to provide for or keep as reserve--stood at 54.07 per cent as on December 31, 2017.
Shares of the bank traded at Rs 109.10 apiece on BSE, up 0.51 per cent from previous close.