KVB Q4 net up 27%; to pay 140%

Despite the economic slowdown and a marginal rise in its NPA (non-performing asset) level, Karur Vysya Bank managed to grow its top line in 2011-12.

The bank's total income in the fourth quarter ended March 2012 increased to Rs 1,059.27 crore compared with Rs 695.37 crore in the corresponding quarter of the earlier fiscal.

Its net profit increased by 27.3 per cent to Rs 146.79 crore (Rs 115.29 crore) and operating profit by 46 per cent to Rs 213.05 crore (Rs 145.89 crore).

The board has recommended a dividend of Rs 14 per share (140 per cent) for the 2011-12 fiscal compared with 120 per cent in the previous year.

“We have managed to maintain profitability and keep the top line growing, despite market pressures and slowdown. Going forward, we intend to go for high quality assets and this could mean on lower margins, but we want to ensure asset quality,” the bank's Chief Executive and Managing Director, Mr K. Venkataraman, told Business Line.

The bank's gross and net NPAs had gone up slightly from 1.26 per cent and 0.07 per cent to 1.33 per cent and 0.33 per cent, respectively.

Mr Venkataraman attributed this to the overall slowdown. “There was no sector-specific strain,” he added.

The bank's net interest margin (NIM) fell from 3.39 per cent in 2010-11 to 3.08 per cent in 2011-12.

The bank's net profit for the year crossed the Rs 500-crore mark to Rs 501.72 crore against Rs 415.59 crore achieved at the end of the previous fiscal.

KVB has more than doubled its net profit in three years, the Mr Venkataraman said.

Its total income grew 46 per cent to 3,620.52 crore (Rs 2,482.03 crore).

The bank registered a 32 per cent growth in business with deposits growing at 30 per cent and advances by 34 per cent.

Network expansion

KVB added 82 branches to its network during the year to reach 451; added 337 ATMs to take the total ATMs to 825 and employee strength grew from 4,574 to 5,673 as at end March 2012.

The bank is targeting a business of Rs 72,000 crore this fiscal.

lnr@thehindu.co.in