Karur Vysya Bank has reported a double-digit growth in net profit for the third quarter of this fiscal, amid a marginal decline in operating profit, mainly due to higher operating expenses.

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The December 2023 quarter saw the Bank’s balance sheet cross ₹1 lakh crore.

The old private sector bank has reported a 43 per cent increase in its net profit at ₹412 crore for the quarter ended December 31, 2023, when compared with ₹289 crore in the year-ago quarter, supported by lower provisions.

The bank’s operating profit came down marginally (by twoper cent) to ₹676 crore when compared with ₹689 crore, an increase of 36 per cent.

Net interest income grew by 13 per cent at ₹1,001 crore (₹.889 crore in the year-ago quarter). Net interest margin dropped to 4.32 per cent, up from 4.36 per cent a year ago.

Operating expenses were higher by 32 per cent at ₹683 crore (₹517 crore). Total expenditure (excluding provisions and contingencies) stood at ₹1,821 crore (₹1,324 crore).

Total provisions and contingencies were significantly lower at ₹150 crore as against ₹364 crore. NPA provision was also lower at ₹108 crore (₹250 crore). Slippages were also lower at ₹23 crore (₹15 crore).

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Gross NPA declined to 1.58 per cent during the December 2023 quarter from 2.7 per cent a year ago. GNPA was 1.73 per cent as of September 30, 2023. Net NPA fell to 0.42 per cent as compared to 0.90 per cent in the year-ago quarter and 0.47 per cent in the preceding quarter.

“Our total business crossed ₹1,58,357 crore. The inclusive growth from all the business segments has helped us to reach a net profit of ₹1,149 cr for the 9-month period and ₹412 cr for the quarter,” said B Ramesh Babu, Managing Director & CEO, The Karur Vysya Bank.

The balance sheet size of the Bank stood at ₹1,02,868 crore as of December 31, 2023, as against ₹89,013 crore as of December 31, 2022, an increase of 16 per cent.

Total deposits grew by 13 per cent at ₹85,665 crore as compared to ₹75,932 crore a year ago. CASA’s share declined to 32 per centfrom 34 per centa year ago. CASA deposits grew by fiveper cent to ₹27,012 crore (₹25,800 crore a year ago).

Gross advances increased by 17 per cent Y-o-Y to ₹72,692 crore as compared to ₹62,081 crore a year ago. Advances in agriculture, retail (personal banking), commercial and corporate segments grew 19 per cent (at ₹16,833 crore), 21 per cent (₹17,090 crore), 20 per cent (₹24,398 crore) and sixper cent (₹14,371 crore) respectively.

For the ninemonths, the Bank’s net profit grew by 50 per cent at ₹1,149 crore when compared with ₹768 crore in the April-December 2022 period.