New Delhi: Karur Vysya Bank on Wednesday reported a jump of 59 percent in its net profit at Rs 72.92 crore in the first quarter of the current fiscal, on two-fold jump in one of the interest components and lower provisioning for bad loans.
The bank's net profit during the corresponding April-June period of previous fiscal 2018-19 was at Rs 45.91 crore.
Total income during the June quarter of 2019-20 rose to Rs 1,762.37 crore as against Rs 1,697.40 crore a year ago's same period, Karur Vysya Bank said in a regulatory filing.
The bank's interest on balances with the Reserve Bank of India (RBI) and other interbank funds grew by over two times to Rs 32.46 crore during the quarter, as against Rs 15.05 crore a year ago same period.
The provisions towards bad loans and contingencies fell to Rs 329.97 crore during the quarter as against Rs 422.67 crore in the same quarter of 2018-19.
However, the private sector lender witnessed a rise in its bad loans as the gross non-performing assets (NPAs) rose to 9.17 percent of the gross advances by end of June 2019, from 7.44 percent on June 2018.
Net NPAs were 4.94 percent, higher than 4.50 percent year earlier.
In absolute value, the gross NPAs stood at Rs 4,510.83 crore by the end of first quarter of 2019-20 against Rs 3,563.39 crore in the year-ago period. Net NPAs were valued at Rs 2,321.77 crore, up from Rs 2,088.32 crore.
The bank said that in respect of three accounts under 'red flag' category, the forensic audit process to review the status of the accounts is under progress and remains to be concluded within six months as stipulated by the RBI.
"No significant adverse comments were observed in these accounts during the internal inspection/review carried out by the bank. Draft forensic audit report has been received in respect of two accounts and discussed by the member banks in consortium," it said in the filing.
These accounts, which have balance outstanding of Rs 261.72 crore, are classified as NPA and have also been referred to NCLT under-recovery proceedings.
The provision coverage ratio of the bank stood at 59.05 percent as on 30 June, 2019.
Shares of Karur Vysya Bank were trading 0.46 percent lower at Rs 64.70 apiece on the BSE.
Updated Date: Jul 24, 2019 15:08:31 IST