InvestorQ : How did KVB report such good numbers for the Jun-20 quarter?
Sam Eswaran made post

How did KVB report such good numbers for the Jun-20 quarter?

swati Bakhda answered.
11 months ago

Karur Vysya Bank reported a 45% growth in net profits at Rs.105.50 crore for the Jun-20 quarter on the back of a sharp fall in bad loans. Total income fell by about 3.5% at Rs.1693 crore for the period. The bank’s core retail banking income fell 5% to Rs.930 crore while the interest income was lower by about 8% at Rs.1,376.10 crore for the Jun-20 quarter.

The gains were visible in the asset quality as the gross NPAs improved from 9.17% to 8.34% on a YOY basis as of Jun-20. The net NPAs also fell from 4.94% to 3.44% on a YOY basis. During the quarter, KVB made provisions for bad loans and contingencies at Rs.338 crore, almost at par with the previous year’s quarter.

Of course, the gross NPA level still continues to be quite elevated and could impact the balance sheet of the bank once the EMI moratoriums are lifted later this year. Meanwhile, the bank also saw its capital adequacy levels improve significantly in the Jun-20 quarter from 15.99% to 18.14% on a YOY basis. KVB took a hit on the pandemic lockdown.