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Karur Vysya Bank’s net profit up 30 %

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ROBUST GROWTH: P. T. Kuppuswamy, Chairman, Karur Vysya Bank, addressing a press conference in Chennai on Friday.
ROBUST GROWTH: P. T. Kuppuswamy, Chairman, Karur Vysya Bank, addressing a press conference in Chennai on Friday.

orporate Reporter

Total business nearly doubles in three years; Healthy growth in deposits

Pays 120 per cent dividend

To consider stock option scheme

CHENNAI: Karur Vysya Bank expects a healthy growth in credit offtake even with the expectation of a further rise in interest rates.

Addressing presspersons here on Friday, P. T. Kuppuswamy, Chairman said the credit-deposit ratio of the bank was around 75 per cent and the bank would not find any problem in credit absorption in the current financial year.

Mr. Kuppuswamy said the bank was consistently reporting good financial performance and the total business had almost doubled in three years and stood at Rs. 22,118.83 crore as on March 31, 2008.

In the year ended March 31, 2008, deposits recorded a growth of 34.4 per cent to Rs. 12,549.99 crore from Rs. 9,340.29 crore in the previous year. Advances grew by 33 per cent to Rs. 9,568.84 crore from Rs. 7,194.37 crore.

The Chairman said that the bank’s relentless drive for maintaining asset quality despite an increase in advances portfolio had paid rich dividends with the ratio of gross NPAs (non-performing assets) to gross advances falling to 2.03 per cent from 2.82 per cent, a year ago.

The net NPA at 0.18 per cent was one of the lowest in the banking system, Mr. Kuppuswamy said.

Total income of the bank rose by 30.7 per cent to Rs. 1,289.33 crore from Rs. 986.55 crore, with interest income from advances increasing by 38 per cent to Rs. 858.16 crore from Rs. 621.11 crore and other income to Rs. 155.30 crore from Rs. 119.15 crore in the previous year.

The net profit rose by 30.2 per cent to Rs. 208.33 crore from Rs. 160.01 crore.

A dividend of 120 per cent has been announced. This was the fifth year in succession wherein the bank was paying a dividend at or above 100 per cent, the Chairman said.

For the current financial year the bank is targeting deposits of Rs. 16,000 crore and advances of Rs. 12,000 crore. With encouraging response for its depository services the bank plans to roll out in more branches during the current year.

KVB had already rolled out debit card based e-commerce transactions. It is set to enable e-commerce transactions through internet channel shortly.

Mr. Kuppuswamy said the bank had constituted a compensation committee of the board to consider implementation of stock option scheme for the bank employees.

To meet the banking aspirations of students, young professionals and salaried persons in the age group of 20 to 35 years, the bank has launched a product ‘KVB Yuvashakthi’.


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