NEW DELHI: Private sector lender Karur Vysya Bank on Friday reported a 52 per cent jump in its net profit at Rs 250 crore for the quarter ended September 30, on the back of a double-digit growth in net interest income and fall in bad loans.
The South-based lender had posted a net profit of Rs 165 crore in the year-ago quarter.
Total income of the bank during the July-September period of 2022-23 rose to Rs 1,821.05 crore, from Rs 1,562.61 crore in the same period of 2021-22, KVB said in a regulatory filing.
Net interest income -- interest earned minus expended -- grew by 21 per cent to Rs 831 crore during the quarter, from Rs 680 crore in the year-ago period.
The lender substantially improved its bad loans ratio with gross non-performing assets (NPAs) falling to 3.97 per cent of gross advances by end of September 2022, from 7.38 per cent by end of September 2021.
Value-wise, the gross NPAs stood at Rs 2,456.53 crore, down from Rs 3,971.64 crore.
Net NPAs were also down to 1.36 per cent (Rs 818.72 crore) from 2.99 per cent (Rs 1,537.71 crore).
Despite a fall in bad loans proportion, the lender kept a higher provisioning for bad loans and contingencies at Rs 227.19 crore for Q2FY23, against Rs 165.71 crore in Q2FY22.
Among other key business ratios, the lender gained on its net interest margin (NIM) at 4.07 per cent during September 2022 quarter, against 3.74 per cent in September 2021 quarter.
Also, the cost of income ratio improved to 46.16 per cent from 55.68 per cent.
Gross advances were up by 16 per cent from a year ago to Rs 65,660 crore at end of Q2FY23 and deposits grew by 13 per cent to Rs 73,614 crore.
The scrip of KVB closed at Rs 90.70 apiece on BSE, down 1.57 per cent.