Monday, September 27, 2010

KARUR VYSYA BANK= UPDATE DT 27 SEPT 2010 = GOOD Q1 RESULTS = ATTRACTIVE BONUS & RIGHTS = GOOD FUTURE


Karur Vysya Bank Limited
NSE Symbol   KARURVYSYA
UPDATE AS ON 27 SEPT 2010

RESULTS REVIEW FOR Q/E JUNE 2010

Net profit is Rs.84.48 Crore as against Rs.70.35 crore for the corresponding quarter of FY10, registering a growth of 20.09%.
Operating Profit is Rs.130 crore up from Rs.94.17 crore, posting a growth of 38.05%.
Total income is Rs.544.27 crore up from Rs.487.37 crore, registering a rise of 11.67%.
Total interest income is Rs.492.08 crore up from Rs.406.90 crore, a growth of 20.93%. Interest on advances recorded a growth of 16.57% to Rs.371.60 crore from Rs.318.78 crore.
Net Interest Margin stood at 3.37% as against 2.78% of the previous fiscal.
Net NPA is a healthy 0.17% .NPA Provision coverage ratio is 87.53%.
Total deposits as on 30.06.2010 stood at Rs.20274 Crore as against Rs.15253 Crore, a year ago recording a growth of 32.92%. Total advances stood at Rs.14191 Crore, registering a growth of 28.16% over Rs.11073 Crore a year ago. The CD Ratio of the Bank stood at 70%.
The capital adequacy ratio is good, at 14.52% as per Basel II norms (Basel I – 12.70%).
KVB aims to reach a business level of Rs.42052 Crore by end-March 2011. The network of the Bank will be expanded to 385 branches by March 2011. The Bank has recently launched its new products viz KVB’s Prestige Savings account and Gift Card schemes.

BONUS SHARES & RIGHT SHARES

Karur Vysya Bank has decided : (1) To issue Bonus shares in the ratio of 2:5 (i.e. Two bonus shares of Rs. 10/ - each will be issued for every 5 equity shares of Rs. 10/ - each held by the shareholders/ beneficial owners as on the record date. (2) To issue Rights equity shares in the ratio of 2:5 (Two rights shares for every 5 shares held by the shareholders and beneficial owners) as on the record date to be fixed at a later date. The rights issue ratio is on the post bonus capital. The price per right share will be Rs.150/- (i.e. Face value Rs.10/- with a premium of Rs. 140/- per share).

PS : The Bonus issue will raise the current Equity of Rs. 54.44 Cr by 2/5ths to 76.22 cr and on this, a further right issue in the ratio of 2/5 will raise the equity to 106.71 cr approximately – assuming that the rights issue will be fully subscribed. The rights issue is attractively priced at Rs.150 per share. (CMP :Rs.563). The cash accrual by the right shares will enhance the loanable funds of the bank and result in greater profitability in due course.

For medium to long term Investors, KVB is a good addition to their Portfolio.

KVB RANKED AS MOST EFFICIENT MID-SIZED BANK

Business Today in association with KPMG has ranked Karur Vysya Bank as the Most Efficient Mid-sized bank for the year 2009. Judged on the parameters of cost / income ratio, cost / aerage asset ratio, operating profit / employee, absolute increase in return on assets and increase in operating profit / total income, KVB has been ranked at first position. Incidentally, Karur Vysya bank has also been ranked at No. 2 position among the mid-sized bank category (i.e. banks with balance sheet size less than or equal to Rs. 24000 cr.). Also this is the third time that Karur Vysya Bank has been ranked as the Most Efficient Bank. The bank had been ranked so during the years, 2006 and 2007 in the small banks category

RECOGNITION TO
TECHNOLOGY INITIATIVES OF KVB

KVB has been conferred with the Gold CIO Award in the more than Rs. 1000 cr. category of the Enterprise Connect Awards ’09 instituted by CIOL (Cybermedia India Online Limited)-Dataquest. The award recognizes the “leadership combined with vision and mission in deploying information technology for business benefits through pioneering and innovative use with and outside the organization.”
Having migrated to the Core Banking Solution platform in 2005, KVB now provides convenience banking services like Any Branch Banking, Internet Banking, Utility Bills Payment, booking of air and train tickets on-line using VISA Debit Card, VISA Bill payment through Net Banking and Debit card are some of the other initiatives undertaken by the bank.
Recently, the bank had been awarded the "Banking Technology Excellence Awards - 2008" for Best use of IT for Customer Service in Semi-Urban and Rural Areas by Institute for Development and Research in Banking Technology, Hyderabad.

KARUR VYSYA
30-Jun-10
31-Mar-10
Dif%1
31-Dec-09
30-Sep-09
30-Jun-09
Interest on Advances
37160
34234
8.55
34391
33308
31878
Income on Investments
12044
11473
4.98
10617
9253
8285
Income on Balances With RBI
4
7
-42.86
6
1
527
Others
-
871

108
835
-
Interest Earned
49208
46585
5.63
45122
43397
40690
Other Income
5219
4268
22.28
6571
5812
8047
Total Income
54427
50853
7.03
51693
49209
48737
Interest Expended
32146
30167
6.56
30005
29485
29648
Employees Cost
5032
4864
3.45
3837
3235
3341
Other Operating Expenses
4249
3486
21.89
4445
4776
5831
Operating Expenses
9281
8350
11.15
8282
8011
9172
Operating Profit
13000
12336
5.38
13406
11713
9917
Provisions
340
961
-64.62
3143
2299
-1618
Profit before tax
12660
11375
11.3
10263
9414
11535
Tax Expense
4212
1484
183.83
2676
324
4500
Net Profit After Tax
8448
9891
-14.59
7587
9090
7035
Net Profit
8448
9891
-14.59
7587
9090
7035
Face Value .Rs.
10
10
0
10
10
10
Paid-up Equity
5444
5444
0
5396
5395
5395
Reserves
-
156554

-
-
-
Dividend %
-
120

-
-
-
Capital Adequacy Ratio
12.7
12.48
1.76
13.15
13.32
13.11
Basic EPS before Extraordinary items
15.52
18.27
-15.05
14.06
16.85
13.04
Gross/Net NPA
2431
3095
-21.45
2423
2602
2651
 % of Gross/Net NPA
0.17
0.23
-26.09
0.19
0.22
0.24
Return on Assets
1.5
1.86
-19.35
1.54
1.99
1.64
Public holding (%)
96.43
96.43
0
96.36
96.32
96.27


ANNOUNCEMENTS
TO THE NSE

24-09-2010        Karur Vysya Bank Limited has informed the Exchange that on September 22, 2010, the Bank has opened the following 351st branch: The Karur Vysya Bank Limited, 12-B, Zone II, M.P.Nagar, Bhopal.
07-09-2010        Karur Vysya Bank Limited has informed the Exchange that the Board of Directors of the Bank in its meeting held on September 07, 2010, fixed September 18, 2010 as Record Date for the purpose of ascertaining the shareholders and beneficial owners who are entitled for the Bonus Shares.
07-09-2010        Karur Vysya Bank Limited has informed the Exchange that the Board of Directors at its meeting held on September 07, 2010 decided to increase the aggregate of Foreign investment cap from all sources (FDI/FII/NRI) from the existing limit of 24% to 35% (subject to the regulatory policy guidelines of February 2003 on acknowledgement for acquisition/transfer). The Board has decided to seek the approval of the shareholders and the Reserve Bank of India and other authorities, if any, for the same in due course.
07-09-2010        Karur Vysya Bank Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on September 07, 2010 has decided as under: (1) To issue Bonus shares in the ratio of 2:5 (i.e. Two bonus shares of Rs. 10/ - each will be issued for every 5 equity shares of Rs. 10/ - each held by the shareholders/ beneficial owners as on the record date. (2) To issue Rights equity shares in the ratio of 2:5 (Two rights shares for every 5 shares held by the shareholders and beneficial owners) as on the record date to be fixed at a later date. The rights issue ratio is on the post bonus capital. The price per right share will be Rs.150/- (i.e. Face value Rs.10/- with a premium of Rs. 140/- per share).       
18-08-2010        Karur Vysya Bank Limited has informed the Exchange that " the Bank is today, launching the Travel Card at Our Kalbadevi branch, Mumbai."
30-06-2010        Karur Vysya Bank Limited has informed the Exchange that the bank in its ALCO Meeting held on June 30, 2010 decided to fix the Base Rate at 8.50% p.a. effective from July 01, 2010.
08-06-2010        Karur Vysya Bank Limited has informed the Exchange that the Bank has entered into an MOU with "M/s UTI Mutual Fund AMC" for distribution of Mutual Fund products through the Bank's Branches.
21-05-2010        Karur Vysya Bank Limited has informed the Exchange that the Board of Directors at their meeting held on May 20, 2010 has recommended dividend of 120% i.e Rs.12/- per share on the face value of Rs.10/- each for the year 2009-10.
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