A recent press report said that Karur Vysya Bank has reported an increase of 38 % net profit. The bank’s net profit has gone up to Rs. 116.70 crore against Rs 84.48 crore during the corresponding quarter of the earlier fiscal.
Mr. K. Venkataraman, Chief Executive and Managing Director, of the bank said that the bank has done reasonably well in the first quarter. Reports said that the operating profit was up 27 per cent at Rs 165.26 crore (Rs 130 crore). Its net interest income also increased by 20 per cent to Rs 205 crore (Rs 170.63 crore) and total income improved 41 per cent to Rs 768.72 crore (Rs 544.27 crore). The cost of deposits has gone up to 7.8 per cent from 6.5 per cent. The gross NPA fell to 1.48 per cent from 1.67, while net NPA stood at 0.21 per cent.
Mr. K. Venkataraman said that the 50 bps increase was quite unexpected and the bank would take a call on increasing its rate soon. The hike in interest rates will make the rates of home loan, personal loan and other loans to go up.