Private sector Karur Vysya Bank on Friday posted nearly 23 percent rise in its net profit at Rs 104 crore in the last quarter of the fiscal ended March 2021, on account of good growth in retail loan portfolio as well as gold loan. Provisions for bad loans and contingencies too fell, which helped in profit numbers.
The bank had reported a net profit of Rs 84 crore during the same period of the preceding fiscal year FY20. Total income during Q4 FY21, however, fell to Rs 1,565.78 crore from Rs 1,803.15 crore in the year-ago same quarter.
For the entire fiscal year 2020-21, its net profit jumped by about 53 percent to Rs 359 crore from Rs 235 crore in 2019-20, Karur Vysya Bank said in a regulatory filing.
Full-year (2020-21) income was also down at Rs 6,527.07 crore, as against Rs 7,144.60 crore in FY20. Bank’s total business grew by nearly 8 percent to Rs 1.16 lakh crore as of March 31, 2021.
The lender said credit growth during the year was higher at 8.87 percent and gross advances reached Rs 52,820 crore.
“Credit growth resulted from improved offtake in retail and business segment as well as higher growth witnessed in the jewel loan portfolio, backed by digital processing and improved sourcing of loans through various channels,” it said in a release.
Jewel loan portfolio grew by 39 percent during the year and stands at Rs 12,852 crore at end of March 2021.
On asset side, the bank registered decline in gross non-performing assets (NPAs) at 7.85 percent of the gross loans by end of FY21 from 8.68 percent by FY20. In value terms, the gross NPAs fell to Rs 4,143 crore from Rs 4,213 crore. Net NPAs or bad loans improved to 3.41 percent (Rs 1,719 crore) from 3.92 percent (Rs 1,809 crore), backed by consistent follow-up and recovery measures, the bank said.
Provisions for bad loans and contingencies for the reported quarter fell to 71.45 crore from Rs 429.27 crore parked aside for the year-ago period.
The board of directors of the bank has recommended dividend of Rs 0.50 per equity share for the financial year ended March 31, 2021, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the bank, it said.
Stock of Karur Vysya Bank closed 2.03 percent down at Rs 58.05 apiece on the BSE.