Karur Vysya Bank Q3 net drops 38% as bad loans spike
New Delhi: Karur Vysya Bank’s net profit declined by over 38% to Rs71.49 crore for the quarter ending December due to a rise provisions for bad loans.
The private sector lender had registered a net profit of Rs115.76 crore in the corresponding October-December period of previous fiscal 2016-17.
The bank set aside Rs324.70 crore to cover bad loans and contingencies, nearly double the amount of Rs157.50 crore it had parked in the same period of previous fiscal, according to a regulatory filing.
Its gross bad loans spiked to 5.94% of the gross loans at the end of December 2017, as against 2.66% in the year ago period.
In absolute value, it amounted to Rs2,663.32 crore as compared with Rs1,022.24 crore. Net NPAs also turned up at 3.88% by the end of December (Rs1,698.92 crore), against 1.68% (Rs637.52 crore) year ago.
Total income of the bank rose marginally to Rs1,647.17 crore in the October-December period of 2017-18 as against Rs1,581.26 crore in year ago same period.
Provision coverage ratio—the percentage of bad asset that a bank has to provide for or keep as reserve—stood at 54.07% as on 31 December, 2017. Shares of the bank traded at Rs109.10 apiece on BSE, up 0.51% from previous close.