Karur Vysya Bank posts 10% rise in net profit

Karur Vysya Bank has registered a 10.3 per cent increase in its net profit for the quarter ended December 2011 as compared to the corresponding quarter of the previous fiscal.

The bank's net profit rose to Rs 124.92 crore (Rs 113.22 crore); net interest income increased 11.3 per cent to Rs 234.66 crore (Rs 210.69 crore) and interest income by 48.8 per cent to Rs 856.33 crore (Rs 575.49 crore).

Commenting on the performance, KVB's Chief Executive, Mr K. Venkataraman, said “though this is not anything great, we have met our internal targets”.

The bank's Net Interest Margin (NIM) dipped from 3.39 per cent in March 2011 to 3.06 per cent.

Mr Venkataraman said that there was no pressure on margin and he does not foresee it in the coming quarter as well due to softening of interest rates coupled with the 50 bps reduction in the CRR.

KVB though is not planning to cut its advances or deposit rate for now, not until there is a signal from the banking regulator, he said.

The amount set aside towards provisions and contingencies more than doubled this quarter to Rs 36.02 crore (Rs 14.3 crore). Mr Venkataraman said it included NPA provision, standard assets and investment depreciation and there was no sector specific issue.

“Some mid-sized corporates are under pressure. We are going to focus on NPA recovery, CASA and fee-income. We want to see good growth in income,” he added.

The Net NPA rose marginally from 0.19 per cent during the third quarter of 2010-11 to 0.29 per cent in the just ended quarter.

To a query on credit offtake, the KVB chief said “it is quite dull at present with corporates putting off project proposals. However, there have been some enhancements and take over of loans from other banks.”

The bank's business mix crossed Rs 52,000 crore with deposits growing by 35 per cent to Rs 30,107 crore and advances increasing to Rs 22,283 crore.

The bank is targeting a total business of Rs 55,000 crore by end March 2012.

With the addition of 32 branches and 100 ATMs this quarter, the branch network of KVB rose to 437 and 712 respectively.

SBT, KVB hike NRE term deposit rates

State Bank of Travancore (SBT) has announced a steep hike in interest rates on NRI term deposits.

The new rates are effective from Saturday (December 24) for fresh deposits as well as those being renewed on maturity, a spokesman said here.

As per the revision, interest rate for deposits for a period of one year to less than two years will be 8 per cent (existing rate 3.82 per cent), the highest in recent years.

The interest rate for deposits of a period of two years to less than three years will be 7.50 per cent (3.51 per cent) and for three years and above up to five years, 7 per cent (3.64 per cent), the spokesman added.

Karur Vysya Bank has proposed to effect a hike in its NRE deposit from December 24.

The yield on deposits of one--two-year tenure is being increased to 10 per cent from 3.82 at present, of 2-3-year time period to 9.75 per cent, and those beyond three years to 9.50 per cent.

The revised rates would be applicable on fresh deposits and those that come for renewal.

Karur Vysya Bank opens 8 new branches

Karur Vysya Bank has added eight new branches today and taken its total branch network to 426. The branches inaugurated today include the Santhosh Nagar branch at Hyderabad apart from branches at Tanuku, Gajapathinagaram in Andhra Pradesh, Tripunithura in Kerala, Kalapatti in Coimbatore, Tamil Nadu, Bhiwandi in Maharashtra and Joka, Baruipur in West Bengal.

It plans to add two more branches to its network on Friday with one each at Bobbili in Andhra Pradesh and Kharagpur in West Bengal.

With the inauguration of these branches, KVB has opened 59 new branches so far this fiscal. The bank is planning to launch a co-branded credit card with SBI.

Bank of Baroda selected as best public sector bank in India: Report

Bank of Baroda and Karur Vysya Bank have been selected as the best banks in the public and private sectors, respectively, at the national level for this year by a jury appointed by the State Forum of Bankers Clubs in Kerala.

The awards in the various categories would be presented at a function here on December 17, the State Forum of Bankers Club President L R R Warrier and General Secretary K U Balakrishnan told reporters here.

Minister of State for Consumer Affairs, Food and Public Distribution K V Thomas will present the forum's 'Businessman of the Year' award to NRI businessman B Ravi Pillai, the Managing Director of the Dubai-headquartered RP Group of companies.

Kerala Finance Minister K M Mani will present the best bank award in the public sector category to Bank of Baroda Managing Director and CEO M D Mallaya, while State Excise Minister K Babu will present the best bank award in the private sector of K Venkitaraman, the CEO and Managing Director of Karur Vysya Bank.

Justice V R Krishna Iyer will present the best bank award in the rural development category to V K Saigal, the Chairman of North Malabar Gramin bank, and the best bank award in the new generation banks category to IndusInd Bank Ltd Managing Director and CEO Romesh Sobti.

Corporation Bank and Indian Overseas Bank were adjudged the second and third best banks in the public sector and Lakshmi Vilas and City Union Bank in the private sector, respectively.

Among the new generation private banks, YES Bank and Axis Bank have been selected for the second and third slots.

About 27 parameters, including the banks' deposits, advances and NAP level were taken into consideration while selecting the best banks, Balakrishnan said.

Source: EconomicTimes

Karur Vysya Bank net up 10% to Rs 113 cr

Karur Vysya Bank's net profit rose 10.44 per cent for the quarter ended September to Rs 113.31 crore compared with Rs 102.60 crore achieved during the corresponding quarter of the earlier fiscal.

Its operating profit increased 8.7 per cent to Rs 157.67 crore (Rs 145.07 crore) consequent to a 24.27 per cent increase in its net interest income to Rs 216.47 crore (Rs 174.19 crore).

Interest income was up 49 per cent to Rs 772.05 crore (Rs 518.38 crore).

The bank's year-on-year net profit increased by 23 per cent to Rs 230.01 crore against Rs187.08 crore during the corresponding first half of the earlier fiscal

With deposits up by 28 per cent at Rs 27,121 crore and advances by 32 per cent to Rs 20,216 crore, the bank's business mix crossed the Rs 47,000-crore mark. The bank is aiming to reach a business level of Rs 55,000 crore by end March 2012.

Its gross NPA fell from 1.55 per cent in the first half of the last fiscal to 1.48 per cent.

Rosaiah hails KVB's efforts in taking banking services to the masses

Customer satisfaction is important while an organisation sought success in its endeavour, including the banks. The growth of Karur Vysya Bank (KVB), started in 1916, to the highest level today, marks its success. Normally people make complaints, but it is not the case with KVB and I tell from my experience as I have an account with the bank, said Dr K. Rosaiah, Governor, Tamil Nadu, here on Saturday.

Addressing the 95th Founders Day celebration of the bank, he said that nationalisation of banks in 1969 brought a paradigm shift in taking the banking services to the masses and unreached areas. KVB, built on the principles of trust, efficiency and quick service, has grown manifold because of its service evident from having half of its branches in rural areas and serving the rural population in a big way, following Mahatma Gandhi's ideals of bringing socio-economic development to the villages. The visionary founders need to be remembered and the successive generations have carried forward the ideals, he said. Inclusive banking and rural upliftment with efficiency in service should take the bank to greater heights, he said.

The initial seed capital of Rs 1.25 lakh and its current net owned funds over Rs 2,370 crore, speaks for itself, he added.

Mr K. Venkataraman, Managing Director and Chief Executive Officer of the bank, in his address said the bank has been celebrating the Founders Day across various centres graced by dignitaries to share the growth story with the customers and be one amongst them.

The capital adequacy ratio stood at 14.83 per cent, well above the Reserve Bank of India's stipulated ratio of 9 per cent and the net non-performing assets at 0.21 per cent was one of the lowest in the country, he said. The bank has been earning profits since inception and declared dividend uninterruptedly, declaring even 120 per cent in the last three years. The bank has earned laurels from many quarters and is recognised as the best old private sector bank, he added.

Earlier, Mr K.P. Kumar, Chairman, KVB, delivered the welcome address and Mr A.J. Suriya Narayana, Director, recalled the historic growth of the bank.