Latest news with #KarurVysyaBank
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Business Standard
25-05-2025
- Business
- Business Standard
Karur Vysya Bank expects 2% more credit growth than industry in FY26
Private sector Karur Vysya Bank expects its credit growth to be more than 2 per cent over the industry's overall growth during the current financial year, a top official said. The Tamil Nadu-based bank has lined up plans to open 28 new branches before the first half of the current financial year, particularly in Southern and Western parts of the country, the Bank's Managing Director and CEO, Ramesh Babu, said. The financial landscape is witnessing a dramatic transformation globally as well as in India, driven by technological innovations, changing consumer preferences and the emergence of alternative business models, he said. "The Reserve Bank of India is expected to adopt a more accommodative monetary policy stance. This could involve further rate cuts to stimulate domestic demand and support economic growth. The sudden escalation at the border has also added more uncertainties for the coming year," Babu told analysts recently, during the Q4 FY2025 Earnings Conference Call. "Considering the above, the outlook for the Financial Year 2025-26 remains cautiously optimistic; we need to navigate margin pressures too and monitor asset quality closely. We expect our credit growth to be more than 2 per cent over the industry growth," he said. On maintaining the Net Interest Margin in the current financial year, Babu said, it is expected to be in the range of 3.7 to 3.75 per cent for the full year. Considering the branch expansion and additional manpower plan, he said the cost-to-income ratio would continue to be around 50 per cent in FY 2025-26. "Our efforts on recoveries should continue, and we expect the momentum gained in the last year will be retained in the financial year 2025-26 too," he said. On Gross Non-Performing Assets (GNPA) and Net NPA, he said, GNPA is expected to be less than 150 basis points and net NPA to be less than 1 per cent for the financial year. "Slippages would be expected to be below 1 per cent of our asset book," he said. The bank reported a 13 per cent growth in net profit to Rs 513 crore during the January-March 2025 quarter, from Rs 456 crore registered in the corresponding quarter of the last financial year. The Board, which met on May 19 recommended a dividend of Rs 2.60 per equity share (130 per cent) for the financial year ending March 31, 2025. Total income during the quarter under review grew to Rs 3,025 crore from Rs 2,813 crore registered in the corresponding quarter of last financial year, he said.
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Business Standard
22-05-2025
- Business
- Business Standard
RBI net sells $34.5 bn in FY25, highest since global financial crisis
The Reserve Bank of India (RBI) sold $34.5 billion in financial year 2024-25 (FY25) on the net basis, the highest since the global financial crisis of 2008-09, latest data released by the central bank showed. In addition, the RBI has cut down its forward book for the first time in seven months, which fell to $84.34 billion as on March 31, 2025 as compared to $88.75 billion in February. After a period of relative stability of almost two years, the Indian rupee (INR) experienced a sharp depreciation in the latter half of FY25, primarily due to a surge in the US dollar index to 108, prompting the central bank to intervene in the foreign exchange market to curb undue volatility. The rise in dollar index was driven by inflationary concerns following US President Donald Trump's assumption of office. The RBI had net sold the highest amount of $20 billion in November 2024. The rupee depreciated by 2.4 per cent in FY25. In response to the panic triggered by Trump's trade policies, the RBI net sold approximately $43 billion in the second half of FY25 to curb volatility, as the rupee plunged to a low of 87.95 per dollar in February this year. India's foreign exchange reserves also fell from $705 billion in the last week of September 2024 to below $625 billion in January 2025. 'US dollar initially strengthened following Trump's election victory on expectations of pro-growth policies. However, starting January 2025, the dollar lost steam as tariff and tax announcements on foreign countries raised trade war concerns, weighing on the US economy,' said V R C Reddy, head of treasury at Karur Vysya Bank. 'This shift supported emerging market currencies, with the INR appreciating sharply from 87.95 (February 10) to 83.75 (May 2),' he added. The RBI has been a net seller of dollars since October 2024. However, it was a net buyer of dollars in the first half of FY25 (April-September), with $8.52 billion worth of US dollars purchased during the period. In FY24, the central bank had net bought $41.27 billion. Further, on the back of the substantial dollar sale during the year, market experts expect the central bank to transfer a record surplus to the government. The RBI gross sold around $399 billion during FY25. The rupee saw significant volatility over the year, allowing the RBI to capitalise on dollar sales and record gains, they said. 'The high dollar sale will be the basis for the record dividend from the RBI to the government this year,' said Madan Sabnavis, chief economist at Bank of Baroda. 'The gross numbers are quite higher than net sale data,' he added. The central bank is expected to transfer a surplus between ~2.5 trillion and ~3 trillion for FY25, against ~2.1 trillion in FY24. The RBI had net bought the highest amount in March 2025 when the rupee regained strength against the dollar, buoyed up by inflows after hitting new lows earlier in the year. The RBI intervened in the foreign exchange market to curb excessive volatility and conducted buy/sell swap auctions. These measures helped inject rupee liquidity into the banking system while also supporting the rupee amid global uncertainties. As a result, the rupee strengthened significantly in March, recovering from nearly 88 per dollar to regain all losses for the calendar year (CY25).
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Business Standard
20-05-2025
- Business
- Business Standard
Karur Vysya Bank Q4 net profit up 13% to Rs 513 crore on strong growth
Private-sector lender Karur Vysya Bank's net profit for the January-March quarter (Q4) of 2024-2025 (FY25) grew 12.5 per cent year-on-year (Y-o-Y) to ₹513 crore, driven by strong performance across key metrics — growth, profitability, and asset quality. This was the Tamil Nadu-based bank's highest quarterly profit for Q4. The bank's pre-provision operating profit for the quarter increased 17.6 per cent to ₹835 crore, excluding a one-off item valued at ₹157 crore, against ₹710 crore in the year-ago period. The lender's net interest income also rose 9.11 per cent to ₹1,089 crore from ₹998 crore in the corresponding quarter last year. The bank's net interest margin declined to 4.05 per cent from 4.2 per cent. However, its overall performance was strong, supported by an improved yield on advances of 10.21 per cent, up by 11 basis points (bps). 'The bank has recorded the highest quarterly profit of ₹513 crore for the fourth quarter, continuing its strong performance, guided by our three key metrics: growth, profitability, and asset quality. Both advances and liabilities grew 14 per cent each during the year,' said Managing Director and Chief Executive Officer Ramesh Babu B. 'We have continued to maintain a strong growth trajectory in Retail, Agriculture, and MSME verticals throughout the year, registering a 20 per cent growth. Our total business crossed ₹1.86 trillion with deposits crossing ₹1 trillion during the fourth quarter of the year,' he added. The lender's gross non-performing assets (NPAs) improved by 64 bps and stood at 0.76 per cent of gross advances as on March 2025 (₹642 crore) compared to 1.40 per cent Y-o-Y (₹1,042 crore). Net NPAs were below 1 per cent and stood at 0.2 per cent of net advances, against 0.4 per cent Y-o-Y. Provision coverage ratio was 96.81 per cent in FY25 against 94.85 per cent in FY24. Cost of deposits increased by 38 bps to 5.74 per cent in Q4 compared to 5.36 per cent for the corresponding quarter of the previous year. Yield on advances improved by 11 bps Y-o-Y to 10.21 per cent from 10.10 per cent. The bank's Q4 operating expenses were ₹764 crore against ₹757 crore during the corresponding quarter of the previous year. Cost-to-income ratio stood at 47.77 per cent from 51.62 per cent Y-o-Y. The lender's total business for FY25 was ₹1.86 trillion, registering a Y-o-Y growth of 14.08 per cent, from ₹1.63 trillion in FY24. Total deposits crossed ₹1 trillion to ₹1.02 trillion in FY25, a Y-o-Y growth of 14.55 per cent from ₹89,113 crore in FY24. Total advances also increased 14 per cent to ₹84,491 crore, from ₹74,423 crore as on March 2024.
Business Standard
20-05-2025
- Business
- Business Standard
Karur Vysya Bank gains after Q4 PAT rises 13% YoY to Rs 513 cr
Karur Vysya Bank added 1.06% to Rs 227.85 after the bank's standalone net profit rose 12.55% to Rs 513.36 crore on 7.52% increase in total income to Rs 3,025.26 crore in Q4 FY25 over Q4 FY24. Profit before tax in the March 2025 quarter stood at Rs 673.57 crore, up 17.44% from Rs 573.50 crore reported in the same period a year ago. Operating profit was at Rs 834.97 crore in the fourth quarter of FY25, down 3.68% from Rs 866.91 crore posted in Q4 of FY25. Provisions (other than tax) and contingencies fell 44.99% YoY to Rs 161.40 crore during the quarter under review. Net interest income increased 9% to Rs 1,089 crore in Q4 FY25 as against Rs 998 crore recorded in Q4 FY24. Net interest margin (NIM) reduced to 4.05% in Q4 FY25 as compared to 4.20% reported in the same quarter a year ago. On the asset quality front, gross non-performing assets (NPAs) stood at Rs 641.80 crore as on 31 March 2025 as against Rs 1,041.64 crore as on 31 March 2024. The GNPA ratio declined to 0.76% as of 31 March 2025 as against 1.40% as of 31 March 2024. The net NPA ratio stood at 0.20% as of 31 March 2025, compared to 0.40% as of 31 March 2024. The provision coverage ratio stood at 96.81% as of 31 March 2025, compared to 94.85% in the corresponding period of the previous year. CASA deposits stood at Rs 27,832 crore as of 31 March 2025, up 3%YoY. The CASA ratio reduced to 27.27% as of 31 March 2025, as compared to 30.39% as of 31 March 2024. Return on assets (ROA) and return on equity (ROE) for Q FY25 were at 1.73% and 17.21%, respectively. During the quarter, revenue from retail banking segment came in at Rs 1,964.91 crore (up 14.97% YoY), corporate or wholesale banking segment was at Rs 539.40 crore (up 13.84% YoY), treasury segment was at Rs 455.53 crore (down 21.62% YoY), while revenue from other banking operations segment was at Rs 65.42 crore (up 32.48% YoY). Meanwhile, the companys board has recommended a dividend of Rs 2.60 per equity share for the financial year ended 31st March 2025, subject to the approval of the shareholders at the ensuing annual general meeting (AGM) of the Bank. Karur Vysya Bank provides services such as personal, corporate, and agricultural banking and services to NRIs and SMBs.
Time of India
20-05-2025
- Business
- Time of India
Karur Vysya Bank Q4 Results: Net profit rises 12% YoY to Rs 513 crore; stock rises
Karur Vysya Bank gained 1.22% on BSE as investors reacted positively to its fourth quarter earnings. The Sensex meanwhile fell 1.03% Tuesday. The bank's scrip closed the day at Rs 228.20 against the previous close of Rs 225.45. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Ein Hausrezept für eine saubere Leber und weniger Bauchfett (vor dem Schlafen) Gesund Entgiften Undo The private sector lender reported a 12.50% year-on-year rise in fourth quarter net profit at Rs 513 crore as compared with Rs 456 crore in the year-ago period Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. The pre-provision operating profit stood 17.60% higher at Rs 835 crore, as compared to Rs 710 crore earlier. The bank has made the highest ever annual profit of Rs 1,942 crore for the year ended March 31 and highest quarterly profit of Rs 513 crore, managing director B Ramesh Babu said. "The strong performance was guided by our three key metrics: growth, profitability, and asset quality," he said. Live Events Its net interest margin for the quarter was at 4.05% as compared with 4.20% for the corresponding quarter of the previous year. Net interest income increased by 9.11% at Rs 1,089 crore. The bank's total advances rose 13/5% year-on-year to 84,491 crore at the end of March while gross non-performing assets ratio stood lower at 0.76%, down 64 basis points year-on-year. Total deposits grew 14.6% to Rs 1.02 lakh crore.
