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Karur Bank Registers 7.91% of Y-o-Y Growth, Credit Growth of 4,304 Crore

By Ojas Singh

New Delhi: Karur Vysya Bank registered a total growth of 7.91% against the Year on Year growth with a total credit growth of 4,304 crore by the financial year end 31 March 2021. Net NPA or Bad loan improvement by 51 bps and dropped to 3.41%.

Total business as on 31st March 2021 stands at Rs. 1,16,098 crore, registering a Year on Year growth of 7.91% i.e. Rs.8,507 crore from Rs. 1,07,591 crore as of last year. Consecutively, growth continued and which stood Rs. 1,896 crore (1.67%) during Quarter 4, up from a level of Rs. 1,14,202 crore as on 31.12.2020.

The bank’s net profit for the year 2021 grew by 52.76% to Rs. 359 crore compared to Rs. 235 crore in the previous year.  Further, the Credit growth during the year was higher at 8.87% (Rs.4,304 crore) and gross advances reached a level of Rs.52,820 crore as on 31.03.2021, up from Rs. 48,516 crore (including IBPC of Rs. 800 crore) a year ago. Ex-IBPC, the growth was Rs.5,104 crore i.e.11%. Q4 growth was Rs.707crore (1.36%).

The increase in Credit growth resulted from improved off take in retail and business segment as well as higher growth witnessed in the jewel loan portfolio which registered growth of Rs 3,625 crore at 39% during the year 2021 and net credit stands at Rs 12,852 crore, backed by digital processing and improved sourcing of loans through various channels, the bank said in a press release.

The bank witnessed the Net NPA or Bad loan improvement by 51 bps and dropped to 3.41% as on 31.03.2021 from 3.92% compared to previous year, backed by consistent follow-up and recovery measures. In absolute terms, it has reduced by Rs.90crore to Rs.1,719 crore from Rs. 1,809crore as on 31.03.2020. As at 31.03.2021, Gross NPA also has declined to7.85% (Rs.4,143 crore as compared to Rs. 4,213crore (8.68%) a year ago).

Apart from these, Branch and ATM Cash Recyclers network as on 31st March 2021 stands at 780 &2236 respectively (corresponding position was 779 & 2,224 as on 31st March 2020).

Total deposits grew by Rs. 4,203 crore (7%) to Rs.63,278 crore up from Rs. 59,075 crore as of 31st March 2020. Growth was driven by sustained improvement CASA mix as well as retail term deposits.  CASA share is up by 289bps to 34%; CASA deposits are up by Rs.3,147 crore i.e.17% on Y-o-Y basis to Rs.21,654crore as on 31st March 2021 growing from a level of Rs. 18,507crore a year ago

Financial Performance Q4 –FY 2020-21

Financial performance for the 4th quarter showed a significant growth in several areas. Net profit for the quarter rose by 23.81% to 104 crore which stood 84 crore during the Q4 of previous year.  Operating profit for the quarter stood at Rs.250 crore down by 50% from Rs.500 crore for Q4 of the previous year, this comes after expensing of Rs. 62crore towards arrears payable under XI Bi-partite settlement (BPS) and interest on interest reversal of Rs. 25 crore as per the order of Honorable Supreme Court.

However, Even after factoring the above, net interest income for the quarter is higher at Rs.613 crore for the current quarter vis-à-vis Rs. 590 crore for Q4 of FY 2019-20. Cost of deposits has improved by 92 bps and stands at 4.63% as compared to 5.55% during the previous year. Yield on advances is at 8.52% (9.45% for Q4 of previous year) and Net interest margin stands at 3.46%. Non-interest income for the quarter (excluding treasury profit of Rs.2 crore)is Rs.214 crore during the current quarter as compared to Rs. 211crore a year ago (Treasury profit during Q4 of previous year was Rs. 137crore).

Operating expenses for the quarter was Rs.579crore as compared to Rs. 438crore during Q4 of FY 2019-20, after factoring the additional expenditure on account of XI BPS as stated above.