On business front, the bank as has posted 14% growth in business with 14% surge in loan book. The asset quality of the bank has continued to remain strong in Q4FY2025. Bank has reduced the credit to deposit ratio to 82.8% at end March 2025 from 83.5% at end March 2024. However, the CASA ratio of the bank has declined to 27.3% at end March 2025 from 30.4% at end March 2024. The bank has witnessed 19% decline in the other income for Q4FY2025 due to high base on account of one-off income in Q4FY2024 from reversal of Rs 157 crore of provision for SR investments made earlier resulting in increase in other income. The same amount was reclassified as provision for Non-Performing Investments under provisions line leading jump in provisions for Q4FY2024 and 45% drop in provisions for Q4FY2025 due to highbase. There was no impact on net profit for Q4FY2024.
Asset quality remains strong: The bank has maintained strong asset quality in Q4FY2025.
The fresh slippages of loans stood at Rs 179 crore in Q4FY2025 compared with 139 crore in previous quarter and Rs 201 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs was at Rs 95 crore and the write-off of loans was at Rs 133 crore in Q4FY2025. The standard restructured loan book of the bank declined to Rs 537 crore end March 2025. Provision coverage ratio was steady at 96.81% at end March 2025 compared to 96.87% a quarter ago and improved from 94.85% a year ago. The capital adequacy ratio of the bank stood at 18.2% with Tier I ratio at 17.1% at end March 2025. The risk weighted assets of the bank has increased 8% YoY to Rs 66261 crore end March 2025.| Asset Quality Indicators: Karur Vysya Bank | |||||||
| ' | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Mar-24 | Variation | |
| QoQ | YoY | ||||||
| Gross NPA (Rs Crore) | 641.80 | 690.92 | 885.61 | 1024.53 | 1041.64 | -7 | -38 |
| Net NPA (Rs Crore) | 166.21 | 166.69 | 219.22 | 293.66 | 297.97 | 0 | -44 |
| % Gross NPA | 0.76 | 0.83 | 1.10 | 1.32 | 1.40 | -7 | -64 |
| % Net NPA | 0.20 | 0.20 | 0.28 | 0.38 | 0.40 | 0 | -20 |
| % PCR | 96.81 | 96.87 | 96.09 | 94.91 | 94.85 | -6 | 196 |
| % CRAR - Basel III | 18.17 | 15.91 | 16.28 | 16.47 | 16.67 | 226 | 150 |
| % CRAR - Tier I - Basel III | 17.12 | 15.03 | 15.39 | 15.58 | 15.46 | 209 | 166 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||
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Business Highlights:
Healthy business growth: The business of the bank has increased 14% YoY to Rs 186569 crore end March 2025, driven by 14% surge in advances to Rs 84491 crore. Deposits rose 15% to Rs 102078 crore at end March 2025.
CASA deposits ratio declines: The CASA deposits of the bank increased 3% YoY to Rs 27832 crore at end March 2025. The current account deposits increased 1% to Rs 8353 crore, while saving account deposits moved up 4% to Rs 19479 crore end March 2025. The CASA ratio declined to 27.3% at end March 2025 compared to 30.4% at end March 2024, while declined from 28.4% a quarter ago. The term deposits have increased 20% to Rs 74246 crore end March 2025.
Strong retail loan growth: Advances growth was driven by retail loans rising 18% YoY to Rs 20896 crore at end March 2025, while credit to agriculture increased 20% to Rs 20818 crore and MSME 21% to Rs 30730 crore at end March 2025. The corporate credit has declined 14% to Rs 12047 crore end March 2025.
Investment book of the bank increased 6% YoY to Rs 24206 crore at end March 2025. The SLR book moved up 15% to Rs 22231 crore, while non SLR book declined 44% to Rs 1975 crore at end March 2025. The AFS book dipped 19% to Rs 4604 crore, while HTM book rose 14% to Rs 19602 crore at end March 2025. The duration of the AFS investment portfolio stood at 3.7 years end March 2025 compared with 2.14 years at end March 2024.
Margins improve qoq, declines yoy: The bank has shown 38 bps YoY jump in cost of deposits to 5.74%, while yield on advances increased 11 bps YoY to 10.21% in Q4FY2025. Thus, the NIM has declined 17 bps YoY, while rose 2 bps qoq to 4.05% in Q4FY2025.
Branch expansion: The bank has added 22 branches and 55 ATMs in Q4FY2025, taking overall tally to 888 branches and 2252 ATM`s end March 2025.
Book value of the bank stood at Rs 148.2 per share at end March 2025, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 145.5 per share at end March 2025.
Quarterly Performance
NII rises as NIM improves qoq: Bank has recorded 15% increase in the interest earned at Rs 2515.93 crore, while interest expenses increased 20% to Rs 1426.67 crore in Q4FY2025. NII improved 9% to Rs 1089.26 crore in the quarter ended March 2025.
Healthy growth in the core fee income: Bank has posted strong 10% growth in core fee income to Rs 264 crore, while the recoveries and other income jumped 37% to Rs 245 crore, leading to -19% dip in the overall non-interest income to Rs 509.33 crore in the quarter ended March 2025.
Expenses ratio rises: The operating expenses of the bank rose 1% to Rs 763.62 crore, as other expenses moved up 19% to Rs 378.69 crore, while employee expenses declined 12% to Rs 384.93 crore in Q4FY2025. Cost to income ratio rose 47.8% in Q4FY2025 compared with 46.6% in Q4FY2024, leading the Operating Profit to declined 4% to Rs 834.97 crore.
Provisions and contingencies decline: The bank has shown 45% decline in provisions to Rs 161.40 crore. The loan loss provisions declined 23% to Rs 85 crore, while investment provisions fell 83% to Rs 26 crore, standard asset provisions jumped 2450% to Rs 51 crore.
Effective tax rate increased to 23.8% in Q4FY2025 from 20.5% in Q4FY2024. Net Profit rose by 13% YoY to Rs 513.36 crore during quarter ended March 2025.
Financial Performance FY2025:
Bank has posted 21% increase in net profit to Rs 1941.64 crore in the year ended March 2025 (FY2025). The net interest income increased 12% to Rs 4259.92 crore, while non-interest income moved up 11% to Rs 1829.55 crore, pushing up net total income by 11% to Rs 6089.47 crore in FY2025. The operating expenses increased 9% to Rs 2877.14 crore, while provision and contingencies declined 15% to Rs 621.60 crore, allowing profit before tax to increase 23% to Rs 2590.73 crore in FY2025. The cost-to-income ratio improved to 47.2% in FY2025 compared to 48.3% in FY2024. An effective tax rate rose to 25.1% in FY2025 compared to 23.6% in FY2024. The net profit has increased 21% to Rs 1941.64 crore in FY2025.| Karur Vysya Bank: Results | ||||||
| Particulars | 2503 (3) | 2403 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 2515.93 | 2187.05 | 15 | 9678.04 | 8213.16 | 18 |
| Interest Expended | 1426.67 | 1189.11 | 20 | 5418.12 | 4394.74 | 23 |
| Net Interest Income | 1089.26 | 997.94 | 9 | 4259.92 | 3818.42 | 12 |
| Other Income | 509.33 | 626.37 | -19 | 1829.55 | 1649.47 | 11 |
| Net Total Income | 1598.59 | 1624.31 | -2 | 6089.47 | 5467.89 | 11 |
| Operating Expenses | 763.62 | 757.40 | 1 | 2877.14 | 2638.75 | 9 |
| Operating Profits | 834.97 | 866.91 | -4 | 3212.33 | 2829.14 | 14 |
| Provisions & Contingencies | 161.40 | 293.41 | -45 | 621.60 | 728.95 | -15 |
| Profit Before Tax | 673.57 | 573.50 | 17 | 2590.73 | 2100.19 | 23 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 673.57 | 573.50 | 17 | 2590.73 | 2100.19 | 23 |
| Provision for tax | 160.21 | 117.40 | 36 | 649.09 | 495.38 | 31 |
| PAT | 513.36 | 456.10 | 13 | 1941.64 | 1604.81 | 21 |
| EPS*(Rs) | 25.5 | 22.7 | ' | 24.1 | 19.9 | ' |
| Adj BV (Rs) | 145.5 | 120.2 | ' | 145.5 | 120.2 | ' |
| * Annualized on current equity of Rs 161.01 crore. Face Value: Rs 2, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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0 mins read . Dec 18, 2024
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