Karur Vysya Bank net surges 57% to Rs. 142 cr in Q2

Karur Vysya Bank today posted a 57.14 per cent jump in net profit at Rs. 142.22 crore for the second quarter ended September 30.

The bank had recorded a net profit of Rs. 90.50 crore in the corresponding quarter last fiscal, Karur Vysya Bank said in a regulatory filing.

The total income of the lender also increased to Rs. 1,570.27 crore during the quarter from Rs. 1,494.86 crore over the corresponding period of 2014—15 fiscal.

During the quarter, the gross non—performing assets (NPAs) rose to 1.96 per cent from 1.36 per cent at the end of second quarter of 2014—15.

Net NPA of the bank also increased to 0.96 per cent from 0.59 per cent of the total assets.

The shares of the bank were trading in the afternoon at Rs. 430 down 3.78% on the BSE.


Source : Thehindubusinessline

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Karur Vysya Bank Q4 net jumps 15.2%

Private sector Karur Vysya Bank today registered 15.2 per cent jump in net profit at Rs. 137.83 crore for the fourth quarter ended March 31, 2015.

The Tamil Nadu-based bank had registered net profit of Rs. 119.59 crore in the January-March quarter of previous fiscal, 2013-14.

For 2014-15, the net profit of the bank grew by 8 per cent to Rs. 464.28 crore, from Rs. 429.60 crore in the previous fiscal.

Total income for the January-March 2015 quarter went up to Rs. 1,507.61 crore, from Rs. 1,468.45 crore registered during same period of the previous fiscal.

For the financial year ended March 31, 2015 total income of the bank soared to Rs. 5,976.71 crore from Rs. 5,680.41 crore registered a year ago.

The Board of Directors have recommended a dividend of Rs. 13 per equity share of Rs. 10 each for the year 2014-15, it said.

The Bank shares were trading at Rs. 495.75 a piece down by 0.80 per cent over previous close in afternoon BSE.


Source : Thehindubusinessline

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Karur Vysya Bank to build 200 toilets in Gujarat

Karur Vysya Bank informed that the bank has contributed Rs 25 lakh for construction of 200 toilets in Dhandhuka Taluka of Gujarat towards Mukyamantri Svachchta Nidhi as part of the Clean India mission. Bank's assistant general manager and Divisional Head of Ahmedabad division, R Ganesan handed over the cheque to Chief Minister Anandiben Patel in Gandhinagar. The announcement for the same was made on February 13, 2015 during the 98th Founder’s Day celebration of the bank by the Board members and CMD of the bank K Venkatraman at the function held in Ahmedabad.


Source : Thehindubusinessline

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KVB on network expansion spree

After a brief pause, Karur Vysya Bank is now expanding its network aggressively.

The bank has opened three branches in the last two days and grown its network across the country to 623.

The 335th branch of the bank in Tamil Nadu was opened at Kilpauk in Chennai. This incidentally is the 40th branch under Chennai division.

The 336th branch and 62nd under Tambaram division was operationalised on March 18.

The bank plans to open branches at Pillayarkuppam, Nadukuppam and Pootuthakku soon.


Source : Thehindubusinessline

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Karur Vysya Bank wins award

The Best Tech Savvy Bank – Runner Up award in MSME Banking Excellence Awards 2014 has gone to Karur Vysya Bank.

The Chamber of Indian Micro Small and Medium Enterprises has constituted this award.

Jarard Thomas, Deputy General Manager, New Delhi Division, received the award on behalf of the bank from the Minister for Micro, Small and Medium Enterprises Kalraj Mishra


Source : Thehindubusinessline

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Kotak-ING Vysya merger: good fit, good deal

ING Vysya Bank makes a good fit for Kotak Mahindra Bank in many ways. The merger will help Kotak Bank expand its reach at a time when competition in the sectoris set to grow.

Kotak’s network of 641 branches will nearly double with the addition of 573 branches of ING Vysya Bank. Kotak Bank, currently present in metros, will benefit from ING Vysya’s better mix of rural and urban branches along with its strong presence in South India. The chunk of Kotak’s branches are in West and North India.

Next, ING Vysya has been building its high-yielding SME loan portfolio, which has been its core strength. The bank’s SME loan portfolio constitutes 35 per cent of its total loans. For Kotak Bank, this segment is less than 10 per cent of its portfolio. In the past couple of quarters, Kotak Bank’s loan growth has been led by the corporate, small businesses, personal loans and agriculture segments. Within the corporate segment, the bank has been increasing its focus on the mid-market space (Rs5-25 crore); and the merger will hence help the bank build its presence within this space.

ING Vysya also has a strong funding base. The current account, savings account (CASA) ratio is now 33 per cent, up from 27 per cent five years ago. More than half of this has been from current account deposits, which carries zero interest. For Kotak Bank, the differentiated rates on savings deposits has helped it build a strong deposit base. The merger of the two banks will enhance the CASA profile.

 Kotak Bank has also been sitting on excess capital (capital adequacy of 17.6 per cent) and has to cut down its promoter’s stake in the bank from the current levels of about 40 per cent to 20 per cent by March 2018 according to the RBI’s directive. Post-merger, the promoter’s stake in the combined entity will be 34 per cent. The capital adequacy of the combined entity will be about 16.5 per cent, which will continue to provide adequate headroom for growth.In terms of valuations, the deal is a good one. At about two times ING Vysya’s book value, the deal is reasonable in the context of past mergers within the banking space.


Source : Thehindubusinessline

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KVB ties up with Bajaj Allianz for health card

Karur Vysya Bank has tied up with Bajaj Allianz General Insurance for the roll-out of a co-branded health card.

The formal launch of this card happened at Karur on Friday, with the Chief Executive of Karur Vysya Bank, K. Venkataraman, receiving the first card

The bank is looking to issue 25,000 health cards in three months. “And it will not be restricted to our customers, but any individual seeking a health cover,” a senior official of the bank said.

The entry age is between 18 and 65 years and children from the age of three months are eligible for cover along with parents

Bank sources told Business Line that such card holders would be able to get cashless service, including accident-related hospitalisation and death compensation benefit, at any of the 3,500-plus hospitals listed by Bajaj Allianz.

Reimbursement of claims is also possible within 14 days of submission of required documents, the source said.

Awareness campaign

The bank has flagged off a mobile health van to create awareness among the public in the semi-urban and rural pockets about health insurance.

This van will be stationed near the bank’s rural branches. It is equipped to provide free health check-up and will offer discount coupons on various healthcare services, including outpatient treatment, in a network of hospitals, the official said.

In the first leg, the vehicle will cover various cities/towns in Tamil Nadu, including Karur, Salem, Namakkal, Erode, Coimbatore, Tiruchi, Thanjavur, Dindigul and Madurai.


Source: Thehindubusinessline

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KVB net down 37.5% on higher provision

Higher provision for depreciation on investments, bad loans and terminal benefits on wage revision dragged Karur Vysya Bank’s net profit down 37.5 per cent to Rs 82.89 crore in the second quarter of the current fiscal.

The bank’s net profit during the corresponding quarter of the previous fiscal stood at Rs 132.76 crore. Its net interest income increased 4.41 per cent to Rs 298.38 crore (against Rs 285.77 crore).

Net interest margin fell to 2.51 per cent (3.06 per cent).

Total business at the end of the first six months of the current fiscal, however, increased 27.3 per cent to Rs 75,281 crore (Rs 59,121 crore). Deposits were up 29.7 per cent while advances grew 24.27 per cent. Both gross and net NPAs increased to 1.55 per cent (1.26 per cent) and 0.51 per cent (0.32 per cent), respectively.

Source: thehindubusinessline

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Karur Vysya Bank net profit falls 37.5%

Higher provisions towards depreciation on investments, bad loans and towards terminal benefits on wage revision have dragged Karur Vysya Bank's net profit during the second quarter by 37.5 per cent to Rs 82.89 crore.

The bank's net profit during the corresponding quarter of the previous fiscal stood at Rs 132.76 crore.

Its net interest income increased 4.41 per cent to Rs 298.38 crore (Rs 285.77 crore). Net interest margin fell to 2.51 per cent from 3.06 per cent.

Total business at the end of the first six months of the current fiscal, however, increased 27.3 per cent to Rs 75,281 crore (Rs 59,121 crore). Deposits were up 29.7 per cent and advances grew 24.27 per cent.

Both gross and net NPAs increased to 1.55 per cent (1.26 per cent) and 0.51 per cent (0.32 per cent), respectively.

Source: thehindubusinessline

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KVB wins best banker award

Karur Vysya Bank has won Best Banker Growth-Mid Sized award in the second edition of The Sunday Standard Best Bankers’ Awards 2013.

K. Venkataraman, Chief Executive, KVB, received the award on behalf of the bank from Minister for Urban Development Mr Kamal Nath in New Delhi on Friday.

Source: thehindubusinessline

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Karur Vysya Bank Q1 profit down 17%

Private sector lender Karur Vysya Bank said its net profit in the first quarter of the current financial year fell by 17.6 per cent to Rs 120.30 crore.

The bank had posted net profit of Rs 145.95 crore in the corresponding period (April-June) of 2012-13.

Total income rose to Rs 1,429.46 crore during the period under review from Rs 1,109.81 crore a year-ago, the bank said in a filing to the BSE.

Net non-performing assets (NPAs) or bad loans increased to 0.5 per cent from 0.38 per cent during the first quarter of FY13.

Gross NPAs, however, decreased slightly to 1.51 per cent from 1.53 per cent a year earlier.

Shares of the bank ended at Rs 345 apiece on the BSE, down 5.41 per cent from the previous close.

Source: Financial Express

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KVB implements instant remittance service for NRIs

Karur Vysya Bank has implemented Oman-based Bahwan CyberTek’s ‘Cuecent eRemit’, a global remittance solution, to provide instant remittance service for its NRI customers.

BCT said the new remittance solution has helped KVB launch an ‘instant cross-border remittances service’ for non-resident Indians, which offers the remitter the facility to instantly credit funds into the beneficiary account in any bank in India.

BCT is a global provider of innovative software products and solutions.

Under the service, the funds would be instantly remitted and the beneficiary would be able to withdraw the money within a matter of minutes. Both the beneficiary and remitter receive free mobile and email alerts instantaneously on receipt of money.

The bank believes that their NRI customers would be delighted at the speed with which money gets credited to their dependents in India and would also derive comfort from the fact that their dear ones would be able to withdraw money from any ATM within minutes of their making a telephonic request.

The bank is in the process of providing more value-added services to their customers and is looking forward to building them on the Cuecent technology platform from BCT.

Commenting on the deal, S. Durgaprasad, Director and Chief Executive Officer for BCT, said: “India being the top remittance receiver with inflow of $69 billion in 2012 and a large diaspora of Indian migrants in oil-rich Gulf and high income countries like the US, we thought it imperative to provide a convenient, efficient and speedy mechanism to remit money to India.”

Source: thehindubusinessline

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Karur Vysya makes remittance easier

Karur Vysya Bank has implemented Bahwan CyberTek’s Cuecent eRemit, a remittance solution. This is to offer instantaneous remittance service to the bank’s customers. The remittance solution helped the bank launch an instant cross-border remittances service for non-resident Indians. This offers the remitter the facility to instantly credit funds into the beneficiary’s account in any bank in India. Both the beneficiary and remitter receive free mobile and email alerts instantaneously on receipt of money, says a company press release.

Source: thehindubusinessline

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Karur Vysya Bank net up 8% in Q4

Karur Vysya Bank Ltd has reported 8 per cent growth in net profit at Rs 158.58 crore for the fourth quarter ended March 31, 2013, against Rs 146.79 crore in the comparable previous year quarter.

The total business during the quarter grew a little over 21 per cent to Rs 1,284 crore from Rs 1,059 crore last year.

Gross non-performing assets stands at 0.96 per cent against 1.33 per cent last year, and net non-performing assets were at 0.37 per cent (0.33 per cent). The company’s earnings per share at the end of the quarter under consideration moved up to Rs 14.80 from Rs 13.69 last year. Capital adequacy ratio was at 14.41 per cent.

For the full year, the bank posted a net profit of Rs 550 crore, against Rs 501 crore for the year 2011-12. The total business grew to Rs 4,694 crore from Rs 3,620 crore in the previous year.

The bank has recommended a dividend of Rs 14 per equity share of Rs 10, for the year 2012-13.

ravikumar.r@thehindu.co.in

Source: thehindubusinessline

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KVB ties up for e-remittance

Karur Vysya Bank has tied up with Lulu International Exchange, Abu Dhabi and GCC Exchange House, Dubai for electronic remittance.

Under the speed remittance arrangement, the proceeds will be credited to the beneficiaries account electronically, on the same day itself.

The bank has the capability to credit the proceeds to the beneficiaries’ accounts with other banks in India, through the NEFT mode, a spokesperson of the bank said.

Source: thehindubusinessline

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Karur Vysya Bank will have new operation model

Banks need new ideas to win in today’s marketplace. While technological interventions have helped the common man perform many banking and investment transactions from home, we still see a crowd at select branches .

Customers visit the bank to remit cash, operate the locker, avail jewel loan and to just catch up with a banker friend.

“While innovation and technology adoption have helped capture the market initially, continuous improvement in branch operation model would help improve the in-branch experience,” says the Chief Executive of Karur Vysya Bank, K. Venkataraman.

And this 97-year young institution is aiming to focus on improving the in-branch experience this year by changing the layout and sprucing up the interiorswherever it is required.

In the first phase of this exercise, the bank plans to change the layout in as many as 30 branches by end-April.

“Our plan is to change the operation model in 70 branches across the country by the end of this year. We will concentrate on the branches where the customer foot print is more,” said Venkataraman. The bank has embarked on this exercise based on a study made by the Boston Consulting Group.

“We asked them to do a study of other banks and evolve a model that will suit KVB,’ said Venkataraman, who, prior to joining this Karur-headquartered institution, served as the Managing Director and CEO of SBI Global Factors.

“Our vision is to delight the customer continually by blending tradition with technology, improve in-branch experience and serve customers better,” he said.

KVB was set up in 1916 by the late M. A. Venkatarama Chettiar and late Athi Krishna Chettiar to inculcate the habit of savings and provide financial assistance to traders and small agriculturists in and around Karur, a small textile hub in Tamil Nadu.

He said even today, traders continue to patronise this bank. “We are gearing up to meet the requirements of young tech-savvy customers, while continuing to delight our patrons by blending technology and tradition.”


Source: thehindubusinessline

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Y-Cash, KVB launch prepaid mobile wallet in Coimbatore

YPaycash, an innovative mobile wallet, was launched in the city today by Y-Cash Software Solutions and Karur Vysya Bank.

YPaycash, a prepaid mobile wallet, supported various kinds of payments including payments at retail shops, mobile/DTH recharge and fund transfer, Ravi Jagannathan, Vice-Chairman, Y-Cash Software Solution, told reporters here.

The company’s target was to enroll small and mid-sized merchants who typically did not use credit/debit car payment system, he said.

Already launched in Chennai some three months ago, the platform had received tremendous response and over 4,000 retail merchants had already signed up, M Sathish Kumar, vice-president, Business and Operations, Mobile payment, said.

This has twin benefits of lower cost and ease of use and the partnership with Karur Vysya Bank has strengthened the company’s reach to the market, which helped position YPaycash as the non-cash instrument of choice for retailers in Tamil Nadu, he said.

The platform would be launched across the cities and town in Tamil Nadu soon and across the country in another three years, Jagannathan said.


Source: thehindubusinessline

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KVB cuts base rate by 25 bps

Karur Vysya Bank has reduced the base rate by 25 bps and hiked the one to two-year term deposit rate by 50 bps with effect from February 3.

Post this reduction, the base rate now stands at 10.75 per cent and the benchmark prime lending rate (BPLR) at 15.75 per cent.

The rate offered on its domestic and NRE term depositshas been increased by 50 bps to 9.5 per cent for the one to two-year period. Senior citizens would get an additional half-per cent, the bank said in a release.


Source: thehindubusinessline

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Karur Vysya Bank net dips 9.5% in Q3

Karur Vysya Bank’s net profit for the quarter ended December 2012 fell 9.51 per cent to Rs 113.04 crore compared with Rs 124.92 crore during the corresponding quarter of the previous fiscal.

“This is due to higher provision of around Rs 101 crore for taxation, increase in NPA (non-performing asset) provision (of around Rs 30 crore) and decline in provision for depreciation on investment,” said K. Venkataraman, Managing Director, KVB.

The bank’s total income during this period however rose 24.51 per cent to Rs 1177.59 crore against Rs 945.77 crore during the corresponding period of the earlier year.

Net interest income grew 31.43 per cent to Rs 308.44 crore (Rs 234.67 crore) and other income up 17.94 per cent to Rs 105.49 crore (Rs 89.44 crore).

Net interest margin rose to 3.20 per cent (3.04 per cent).

Gross NPA fell to 1.29 per cent (1.45 per cent) while the net NPA increased marginally to 0.38 per cent from 0.29 per cent during the corresponding period of the earlier fiscal.

The total business of the bank stood at Rs 62,811 crore, a 19.89 per cent increase from Rs 52,390 crore a year ago. While deposits grew 17.89 per cent, advances growth rate was higher at 22.59 per cent.

Venkataraman further said that the cost to income ratio has remained high because of KVB’s expansion plans.


Source : thehindubusinessline

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Karur Vysya Bank open to acquisition, if it’s a right fit

Old generation lender Karur Vysya Bank (KVB) is open to acquiring a bank if an opportunity comes its way, said a top bank official.

K. Venkataraman, MD & CEO, KVB, gave this reply to a specific question on whether his bank would throw its hat into the ring to acquire one of the two distressed South-based old generation private sector banks (one headquartered in Tamil Nadu and the other in Kerala).

He, however, said the 96-year old Karur (Tamil Nadu) headquartered bank is not actively pursuing an acquisition at this point in time.

Not a target

On the possibility of KVB becoming an acquisition target once the Reserve Bank of India issues licenses for setting up new private sector banks, Venkataraman said: “We don’t want to be an acquisition target… Moreover, beyond 5 per cent shareholding Reserve Bank of India's permission is required… The RBI does not encourage unfriendly acquisitions.” The KVB chief said his bank is eyeing a business size (deposits plus advances) of Rs 1.25 lakh crore by 2016. Its current business size is Rs 61,000 crore (deposits Rs 35,000 crore and loans Rs 26,000 crore).

Pointing out that the bank is handholding corporate clients which are facing tough times, Venkataraman explained that if the umbrella is taken away when the client needs it the most, it will only end up hurting the bank.

“We will not hesitate in restructuring a loan account,” he added. About 2.7 per cent of the bank’s total loans have been restructured so far.

Capital adequacy

KVB has turned cautious in lending to corporates because of asset quality concerns.

This is reflected in the fact that year-on-year credit growth has slowed to 25 per cent in the current financial year so far against 34 per cent in the year-ago period.

“We will not grow our loan book blindly….There will be no compromise just for the sake of numbers. The safety of depositors’ money is of paramount importance,” said Venkataraman.

If it grows its loan book at an annual rate of 25 per cent, maintains the quantum of yearly capital plough-back and dividend payout, then the bank, which currently has a capital adequacy ratio of 14 per cent, will not need capital infusion till FY2014-15.

KVB stock hit a new high of Rs 524.70 per share on the BSE, up 0.57 per cent over the previous close.

ramkumar.k@thehindu.co.in

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