Karur Vysya Bank Q2 net slumps 40% to Rs 76 crore on high NPAs
Private sector Karur Vysya Bank today reported a 40 per cent fall in net profit at Rs 75.65 crore for the quarter ending September due to increased provisioning for rising bad loans.
The bank had registered a net profit of Rs 126.31 crore in the similar July-September quarter of previous fiscal.
Total income of the bank was at Rs 1,632.50 crore in the July-September period of 2017-18, up from Rs 1,610.77 crore in the same period of 2016-17, the bank said in a regulatory filing.
Its gross non-performing assets (NPAs) hit 4.83 per cent of the gross loans as on September 30, 2017 as against 2.29 per cent till the same period of 2016.
In absolute terms, the gross NPAs were Rs 2,136.19 crore, as against Rs 902.74 crore year ago.
Net NPAs or bad loans too rose to 3.24 per cent (Rs 1,407.30 crore) of the net loans by end of September this year, from 1.44 per cent (Rs 565.14 crore) in year ago period.
The provision coverage ratio, a parameter that helps gauge a company’s ability to meet its financial obligations, stood at 54.09 per cent as on September 30, 2017.
Karur Vysya Bank stock traded 2.41 per cent lower at Rs 125.50 on BSE.
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Via:: Economic Times – Stocks