New Delhi: Karur Vysya Bank on Wednesday reported a rise of 18.7% in March quarter net profit at ₹60.02 due to healthy income from retail banking even as bad loans spiked.
The bank clocked a profit of ₹50.56 crore during the corresponding January-March period of 2017-18, as per a regulatory filing.
Total income in the latest quarter rose to ₹1,746.04 crore from ₹1,699.53 crore in the year-ago period. Income from retail banking was higher 4.6% to ₹967.23 crore.
For full 2018-19 financial year, the bank posted a decline of 39% in net profit at ₹210.87 crore as against ₹345.67 crore in 2017-18, it said.
Income during the year increased to ₹6,778.59 crore from ₹6,599.58 crore in 2017-18.
Bank's asset quality deteriorated during the year with gross non-performing assets (NPAs) hitting 8.79% of gross advances as on 31 March 2019, as against 6.56% by end-March 2018.
Net NPAs rose to 4.98% from 4.16%.
In absolute value, gross NPAs were ₹4,449.57 crore by end of 2018-19, compared to ₹3,015.76 crore a year ago. Net NPAs amounted to ₹2,420.34 crore as against ₹1,862.83 crore earlier.
Even though bad assets were on the rise, the provision for bad loans and contingencies for March 2019 quarter came down to ₹352.34 crore from ₹394.17 crore a year ago.
During March quarter 2019, the bank issued Basel III compliant tier II bonds to the tune of ₹487 crore, it said.
The bank also informed that "since the divergence for the year 2017-18 is lower than the threshold prescribed (by RBI), no disclosure on divergence in asset classification and provisioning for NPAs is required with respect to RBI's annual supervisory process."
The bank's board also proposed dividend of ₹0.60 per equity share for 2018-19, it said.
Provision coverage ratio was 56.86% as on March 31, 2019.
Karur Vysya Bank stock was trading at ₹75.85 apiece on BSE, down 4.59% from previous close.
This story has been published from a wire agency feed without modifications to the text.