Karur Vysya Bank Q3 concall highlights -
Current branch count at 780. Mostly concentrated in TN, Karnataka, AP, Telangana, Kerala, Maharashtra, Gujarat and WB
Key Data-
Advances -64,500cr,up 16 pc yoy
Deposits -76,175,up 14 pc yoy
CASA-up 7pc at 25800 cr ( needs improvement )
CASA ratio at 33 pc
NII -889 cr, up 30 pc yoy
NP -289 cr, up 56 pc yoy
RoA -1.32 vs 0.93 pc
RoE -14.04 pc
NIM -4.32 pc
GNPA -2.66, down 431 bps yoy (massive improvement)
NNPA -0.89 pc, down 166 bps yoy (massive improvement)
PCR -90.87 pc, up 1206 bps yoy (massive improvement)
PPOP -689 cr, up 72pc
Cost of Deposits-4.26 pc
Cost of Funds - 4.29 pc
Yield on advances - 9.04
Yield on funds - 7.92
NIMs- 4.32 pc
Spread - 3.63 pc
Cost/Income - 42.9 pc vs 54.47 (massive improvement)
Breakup of advances-
Commercial (< 25 cr) - 32 pc
Retail - 23 pc
Agri - 23 pc
Corporate - 22 pc
Expect to maintain NIM > 4 pc, RoA at 1.35 pc by Q4 end
Front loaded the provisions book as a matter of prudence, Tax planning and to improve PCR
Credit cost for 9M period at 1.02pc. Likely to be lower next year due front loading of provisions
Gross slippages in Q3 at 162 cr (very healthy) SMA 30+ book at less than 1 pc 86 pc of loan book linked to MCLR, EBLR CRAR at 17.86 ( 9M profits not included ), Liquidity coverage at 200 pc Rating profile of corporate loan book - 30 pc below BB. LY it was 45 pc
Current unsecured book at aprox 500 cr. Hence, bank now tied up with a few TN based micro finance institutions to enter this space. TN is a stable MF mkt. Bank intends to go slow here and build the book gradually
Likely to grow advances by 15 pc plus for Q4. For next yr, will provide guidance in Mar 23
This Qtr’s recovery from written off accounts at 85 cr
Aim to maintain cost/income ratio at 45-47 going fwd. Aim to open 25 new branches next yr ( a modest tgt )
Also hiring a dedicated sales team to mobilise liabilities so that they can keep pace with asset growth. This is a completely new initiative. The team shall also cross sell retail products
Net slippages for last 6 Qtrs have been negative
That’s how asset quality has shown massive improvement
Net slippages likely to remain negative for next 2-3 Qtrs as well !!!
Disc: invested , biased