New Delhi: Karur Vysya Bank on Wednesday reported 39.5 per cent jump in net profit at Rs 83.70 crore for the quarter ended March 2020 on higher income from other sources, even as provisioning went up substantially.

The private sector lender had posted a net profit of Rs 60.02 crore during the corresponding January-March quarter period of preceding fiscal year 2018-19.

The bank’s provisioning for bad loans and contingencies during March quarter of FY20 were raised to Rs 429.27 crore as against Rs 352.34 crore in the year-ago period, Karur Vysya Bank said in a regulatory filing.

Income during the quarter under review rose to Rs 1,803.15 crore from Rs 1,746.04 crore in Q4 of 2018-19.

Even as interest income fell to Rs 1,456.16 crore in March quarter from Rs 1,473.59 crore a year ago, other income rose to Rs 346.99 crore from Rs 272.45 crore.

On the asset front, gross non-performing assets (NPAs) or bad loans of the bank remained elevated at 8.68 per cent (Rs 4,212.77 crore) of gross advances as of March 31, 2020.

Gross NPAs stood at 8.79 per cent (Rs 4,449.57 crore) of gross advances at the end of March 2019.

Net NPAs, however, improved to 3.92 per cent (Rs 1,808.65 crore) from 4.98 per cent (Rs 2,420.34 crore) a year ago.

For fiscal year 2019-20, Karur Vysya Bank’s net profit rose 11.5 per cent to Rs 235.02 crore from Rs 210.87 crore in 2018-19.

Income during the year increased 5.4 per cent to Rs 7,144.60 crore from Rs 6,778.59 crore in 2018-19.

The lender said it has exercised the option of lower tax system brought in by the government in October last year, and accordingly provision for income tax for quarter and year ended March 2020 and remeasurement of deferred tax liability and assets have been made.

“Deferred tax assets (DTA) of Rs 45.95 crore has been recognised on provision for standard assets during the quarter ended March 31, 2020, which was hitherto not recognised by bank,” it said.

Shares of Karur Vysya Bank on Wednesday closed 2.79 per cent lower at Rs 31.35 apiece on the BSE.

Source link