Karur Vysya Bank, a prominent private sector lender has unveiled its financial results for the fourth quarter of the fiscal year. The bank’s net profit surged by a remarkable 35 per cent to reach Rs 456 crore, compared to Rs 338 crore in the corresponding period last year.
According to the regulatory filing, the bank witnessed a substantial increase in total income, which soared to Rs 2,813 crore in the Q4 FY24, as opposed to Rs 2,169 crore in the same period a year ago. This growth trajectory was further bolstered by a surge in interest income, which climbed to Rs 2,185 crore during the quarter under review, demonstrating the bank’s efficient management of its interest-earning assets.
The bank’s gross non-performing assets (NPAs) moderated to 1.40 per cent of gross advances as of March 2024, a significant improvement from 2.27 per cent at the end of March 2023. Similarly, net NPAs also witnessed a decline to 0.40 per cent of advances, further highlighting the bank’s proactive measures in managing credit risk.
For the fiscal year ended March 2024, Karur Vysya Bank recorded a substantial 45 per cent increase in net profit, reaching Rs 1,605 crore compared to Rs 1,106 crore in the previous year. The total income for FY24 surged to Rs 9,863 crore, reflecting a robust growth trajectory for the bank.
Despite its stellar financial performance, the bank’s capital adequacy ratio witnessed a slight decline, standing at 16.67 per cent compared to 18.56 per cent as of March 31, 2023. However, this remains well above the regulatory requirements, indicating the bank’s sound financial position and ability to support its growth initiatives.
The board of Karur Vysya Bank has recommended a dividend of Rs 1.20 per equity share of face value Rs 2 each fully paid up for the financial year 2023-24, subject to approval at the upcoming Annual General Meeting. This gesture underscores the bank’s commitment to enhancing shareholder value while maintaining a prudent approach to capital management.
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