While Karur Vysya Bank's net rose 42.48 per cent to Rs 336.03 crore for the fiscal 2009-10 from Rs 235.84 crore a year ago, the bank's year-on-year growth in net profit has, for the first time, crossed the Rs 100-crore mark, its Managing Director and CEO, Mr P.T. Kuppuswamy, said.
Attributing this achievement to improvement in its net interest income by 37.64 per cent to Rs 564.90 crore (Rs 410.41 crore) and containing of NPAs, Mr Kuppuswamy said the bank's relentless drive to maintain asset quality despite increase in advances portfolio helped reduce the gross NPA to 1.72 per cent from 1.95 per cent, a year ago.
The total business crossed the Rs 32,000-crore mark to reach Rs 32,946.85 crore as on March 31, 2010 from Rs 25,664.29 crore at the end of the earlier fiscal.
Deposits rise 27%
Deposits grew 27.62 per cent to Rs 19,271.85 crore (Rs 15,101.39 crore), while advances increased 29.46 per cent to Rs 13,675 crore (Rs 10,560.50 crore).
The bank has written off bad debts to the extent of Rs 36 crore.
To a query on the increase in employee cost from Rs 122.86 crore to Rs 163.27 crore (as at end March 2010), he said “we have fully provided for the wage revision. The provision is of the order of Rs 18 crore. Adhoc payment of 10 per cent is being made in lieu of bi-partite wage settlement.”
The bank's operating profit during the fourth quarter of the 2009-10 fiscal increased by 63 per cent to Rs 123.36 crore from Rs 75.59 crore during the corresponding period of the earlier fiscal. Net profit rose 18 per cent to Rs 98.91 crore (Rs 83.82 crore) and net interest income up 65 per cent to Rs 163.86 crore (Rs 99.39 crore)
The bank's board has proposed a 120 per cent dividend for the third year in a row. According to Mr Kuppuswamy, this would be seventh successive year of the bank declaring a dividend of 100-plus per cent. The KVB scrip closed at Rs 501.05 on the BSE on Thursday, down 1.21% against the previous close.