Moneycontrol
Nov 14, 2017 01:23 PM IST | Source: Moneycontrol.com

Karur Vysya Bank Q2 profit tanks 40% on higher provisions; NPA spikes to 3.24%

Provisions for bad loans for the quarter stood at Rs 321.4 crore, higher by 37.7 percent sequentially and 76.2 percent YoY.

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Private sector lender Karur Vysya Bank's second quarter (July-September) profit fell sharply by 40.1 percent year-on-year to Rs 75.6 crore, dented by higher provisions and weak asset quality performance.

Profit for year-ago quarter was at Rs 126.3 crore.

Net interest income during the quarter grew by 12.1 percent to Rs 555 crore YoY, with loan growth of 11 percent at Rs 43,435 crore.

Profit missed analyst expectations while NII was in line. Net profit was expected at Rs 157.8 crore and net interest income at Rs 560.7 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

Asset quality deteriorated further as gross non-performing assets (NPA) for the quarter were higher at 4.83 percent compared with 4.27 percent in previous quarter and net NPAs were also higher at 3.24 percent against 2.85 percent QoQ.

In absolute terms, gross and net NPAs were higher by 18 percent each at Rs 2,136.2 crore and Rs 1,407 crore compared with previous quarter.

Provisions for bad loans for the quarter stood at Rs 321.4 crore, higher by 37.7 percent sequentially and 76.2 percent YoY.

Provision coverage ratio declined to 54.09 percent in Q2, from 57 percent in previous quarter.

At 13:06 hours IST, the stock price was quoting at Rs 124.05, down Rs 4.55, or 3.54 percent on the BSE.

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