KARUR VYSYA BANK - FIRST QUARTER RESULTS - Q1 FY 2012-13 -Total Income up 44.37%YoY; NPT UP 25.06% YoY

KARUR VYSYA BANK

FIRST QUARTER RESULTS

Q1 FY 2012-13

Karur Vysya Bank has reported improved performance for the first quarter ending June,2012.

HIGH LIGHTS

Total Income for Q1 FY 13 stands at Rs.1109.81 Cr; up by 4.77% from Q4 FY 12 (Rs.1059.27 Cr); and up by 44.37% from Q1 FY 12 (Rs.768.72 Cr). The increase in Total Income YoY is impressive.

Total Expenditure for Q1 FY 13 stands at Rs.907.13 Cr; up by 7.2% from Q4 FY 12 (Rs.846.22 Cr); and up by  50.32% from Q1 FY 12 (Rs. 603.46 Cr).Expenditure has increased more than Proportionately – compared to the Total Income.

Profit  before Interest, Dep. & Taxes     for Q1 FY 13 stands at Rs.202.68 Cr; down by -4.87% from Q4 FY 12 (Rs.213.05 Cr); and up by 22.64% from Q1 FY 12 (Rs. 165.26 Cr).

Net Profit      for Q1 FY 13 stands at Rs.145.95 Cr; down by  -0.57% from Q4 FY 12 (Rs.146.79 Cr); and up by 25.06% from Q1 FY 12 (Rs. 16.70 Cr). NPT increase YoY is very good, though it is flat QoQ.

Diluted EPS for Q1FY 13 stands at Rs.13.62; against Rs.13.69 in Q4 FY 12; and Rs.11.56 in Q1 FY 12.

DETAILS

Interest on Advances        for Q1 FY 13 stands at Rs.773.36 Cr; up by 6.06% from Q4 FY 12 (Rs.729.18 Cr); and up by 41.16% from Q1 FY 12 (Rs.547.85 Cr).

Income on Investments    for Q1 FY 13 stands at Rs.226.94 Cr; up by  9.62% from Q4 FY 12 (Rs.207.03 Cr); and up by 55.23% from Q1 FY 12 (Rs.146.20 Cr).

Interest Earned       for Q1 FY 13 stands at Rs.1005.53 Cr; up by 6.13% from Q4 FY 12 (Rs.947.47 Cr); and up by  44.78% from Q1 FY 12 (Rs. 694.52 Cr).

Other Income  for Q1 FY 13 stands at Rs.104.28 Cr; down by      -6.73% from Q4 FY 12 (Rs.111.80 Cr); and up by  40.54% from Q1 FY 12 (Rs. 74.20 Cr).

Total Income           for Q1 FY 13 stands at Rs.1109.81 Cr; up by 4.77% from Q4 FY 12 (Rs.1059.27 Cr); and up by  44.37 % from Q1 FY 12 (Rs.768.72 Cr).

Interest Expended for Q1 FY 13 stands at Rs.751.59 Cr; up by 9.48% from Q4 FY 12 (Rs.686.48 Cr); and up by       53.53% from Q1 FY 12 (Rs. 489.53 Cr).

Net Interest Income           for Q1 FY 13 stands at Rs.253.94 Cr; down by      -2.7% from Q4 FY 12 (Rs.260.99 Cr); and up by    23.88 % from Q1 FY 12 (Rs.204.99 Cr). NII has increased reasonably well.

Total Expenditure (Excl.provisions)      for Q1 FY 13 stands at Rs.907.13 Cr; up by 7.2% from Q4 FY 12 (Rs.846.22 Cr); and up by    50.32% from Q1 FY 12 (Rs.603.46 Cr).

Operating Profit      for Q1 FY 13 stands at Rs.202.68 Cr; down by  -4.87% from Q4 FY 12 (Rs.213.05 Cr); and up by 22.64% from Q1 FY 12 (Rs.165.26 Cr).

Provisions     for Q1 Fy 13 stands at Rs.-9.98 Cr;  down by -245.91% from Q4 FY 12 (Rs.6.84 Cr); and down by -126.54% from Q1 FY 12 (Rs.37.61 Cr).

Profit before tax      for Q1 FY 13 stands at Rs.212.66 Cr; up by  3.13% from Q4 FY 12 (Rs.206.21 Cr); and up by  66.6% from Q1 FY 12 (Rs.127.65 Cr).

Tax Expense for Q1 Fy 13 stands at Rs.66.71 Cr; up by 12.27% from Q4 FY 12 (Rs.59.42 Cr); and up by 509.22% from Q1 FY 12 (Rs. 10.95 Cr).

Net Profit      for Q1 FY 13 stands at Rs.145.95 Cr; down by      -0.57% from Q4 FY 12 (Rs.146.79 Cr); and up by 25.06 % from Q1 FY 12 (Rs. 116.70 Cr).

Face Value of Share is Rs.10.  Paid-up Equity stands at Rs.107.18 Cr.

Capital Adequacy Ratio (BASEL II) for Q1 FY 13 stands at 14.72%; against 14.33% in Q4 FY 12; and 12.72% in Q1 FY 12. CAR is very Good and indicates sufficient funds for Q2 and so on .

Diluted EPS  for Q1 FY 13 stands at Rs.13.62; against Rs.13.69 in Q4 FY 12; and Rs.11.56 in Q1 FY 12.

Net NPA         for Q1 FY 13 stands at Rs.92.29 Cr; up by 17.15% from Q4 FY 12 (Rs.78.78 Cr); and up by 137.68% from Q1 FY 12 (Rs. 38.83 Cr).NPAs have increased significantly YoY – but still , considering the Business volume, is well within Manageable Limits.

% of Net NPA for Q1 FY 13 stands at 0.38%; against 0.33% in Q4 FY 12; and 0.21% in Q1 FY 12;

Return on Assets stands at 1.53% in Q1 FY 13; against  1.63% in Q4 FY 12; and 1.65% in Q1 FY 12.

Public Shareholding in the Bank stands at   96.85%.

52 week high/low price : Rs.443.00/Rs.315.00

CURRENT Market Price : Rs.416.40

Some of its earlier Corporate Actions are Given Below :-

Ex-Date                       Purpose         

 19-Jul-2012   :          ANNUAL GENERAL METING / DIVIDEND RS. 14 PER SHARE   

 21-Jul-2011   :          DIVIDEND-RS.12/- PER SHARE      

 17-Feb-2011 :          RIGHTS 2:5 @ PREMIUM RS.140/- PER SHARE   

 16-Sep-2010 :          BONUS 2:5    

 14-Jul-2010   :          DIVIDEND-RS.12/- PER SHARE

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Karur Vysya Bank Limited - QTRLY RESULTS - Q3 FY 12 - 3RD Q/E DEC,2011 -TOTAL INCOME UP 46.43%; NPT UP 10.33%YoY

Karur Vysya Bank Limited

NSE Symbol        KARURVYSYA

KARUR VYSYA BANK  has produced good results for the third quarter ending  Dec,2011.

The comparison hereunder is of the current Quarter Q3 FY 12 – with the previous 2 Qtrs of Q2 FY 12 and Q1 FY 12 – and with the corresponding qtr of Q3 FY 2011.

Interest on Advances        stands at Rs.666.55 cr  in Q3 FY 12 – up by 12.09% from Q2 FY 12; Up by 21.67% from Q1 FY 12; and up by 52.9% from Q3 FY 11. There has been consistent Growth QoQ for all 5 quarters upto Dec,2011.

Income on Investments    stands at Rs.187.55 cr in Q3 FY 12 – up by  6.88% from Q2 FY 12; up by  28.28% from Q1 FY 12; and up by  39.15% from Q3 FY 11.

Interest Earned stands at Rs.856.33 cr in Q3 FY 12; up by  10.92% from Q2 FY 12; up by  23.3% from Q1 FY 12; and up by  48.8% from Q3 FY 11.

After addition of Other Income, the Total Income comes to Rs.945.77 Cr in Q3 FY 12; up by 11.69% from Q2 FY 12; up by  23.03% from Q1 FY12 and up by  46.43% from Q3 FY 11.

Interest Expended stands at Rs.621.66 cr in Q3 FY 12;  up by 11.89% from Q2 FY 12; up by 26.99% from Q1 FY 12; and up by  70.41% from Q3 FY 11. Interest expended has increased more than proportionately compared to Interest earned – indicating some pressure on Net Interest Margins.

Net Interest Income stands at Rs.234.67 cr in Q3 FY 12 – up by  8.41% from Q2 FY 12; up by  14.48% from Q1 fy 12; and up by  11.39% from Q3 FY 11.

Total Expdr(excl.provisions) stands at Rs.756.04 cr in Q3 FY 12; up by  9.72% from Q2 FY 12; up by  25.28% from Q1 FY 12; and up by 62.15% from Q3 FY 11. Expenditure has increased more than proportionately compared to Total Income in Q1 FY 12 and Q3 FY 11.

Operating Profit stands at Rs.189.73 cr in Q3 FY 12 – up by 20.33% from Q2 FY 12; up by  14.81% from Q1 FY 12; and up by 5.63% from Q3 FY 11. The lesser increase in OPT compared to Q2 FY 12 and Q3 FY 11 is due to the “more than proportionate increase in expenditure “ in these 2 Qtrs.

Provisions stands at Rs.36.02 Cr in Q3 FY 12 – up by a huge  171% from Q2 FY 12; but down by -4.23% from Q1 FY 12, and up by a huge 151.89% compared to Q3 FY 11.

After deducting Provisions – the Profit before tax stands at Rs.153.71 cr in Q3 FY 12; up by 6.46% from Q2FY 12; up by  20.42% from Q1 FY 12; but down by  -7.02% from Q3 FY 11.

Tax Expense stands at Rs.28.79 cr in Q3 FY 12 – down by  -7.34% from Q2 FY 12; Up by  162.92% from Q1 FY 12; but down again by  -44.74% from Q3 FY 11.

From PBT to Net Profit, the Lower tax provision in Q3 FY 12 compared  to Q3 FY 11 has saved the day in making the Net profit  more than the corresponding qtr by 10%. The final Net Profit stands at Rs.124.92 Cr  in Q3 FY 12  -  up by 10.25%  from Q2 FY 12;  up  by 7.04% from Q1 FY 12; and up by  10.33% from Q3 FY 11.

Capital Adequacy Ratio     stands well at 13.25%

% of Gross/Net NPA stands at 0.29% in Q3 FY 12; 0.29% from Q2 FY 12; 0.21% in Q1 FY 12; and 0.19% in Q3 FY 11. The percentage is comfortable.

Return on Assets is good 1.49  in Q3 12 though down from  1.84 of Q3 FY 11.

Basic EPS stands at Rs.11.66 in Q3 FY 12; Rs.10.57 in Q2 FY 12; Rs.11.56 in Q1 FY 12; Rs.14.86 in Q3 FY 11.

The annual EPS is likely to be around Rs.45.45.

The current Market price is Rs.382.30;  While the 52 week high price is Rs.560 and the 52 week low price is Rs.315.

The Price Earnings Ratio is 8.41.

With the cut in CRR Ratio by 0.5%, all Banks, especially Private sector banks, may see good upside in their profitability from the 4^th qtr onwards – with a good uptick in credit scenario. With Both Government and RBI stressing on Growth First now – we can expect further enabling measures for Growth all of which will be good for the banking sector.

Karur Vysya Bank’s Net Profit 

Up by 18% for 9 m/e Dec,2011

Net profit for the Karur-headquartered KVB rose year-on-year by 18.19% to Rs.354.93 crore against Rs.300.30 crore for the same period in the pervious fiscal.

The bank’s operating profit for the period rose by 12.75% and stood at Rs.512.66 crore from Rs.454.69 crore in the corresponding period in 2010.

Net Interest Income stood at Rs.656.13 crore as against Rs.555.50 crore for the corresponding period. NIM stood at 3.06%

The Bank has crossed the business mix of Rs.52000 crore. The deposits of the bank were up by 35.23% to Rs.30107 crore while gross advances increased to Rs.22283 crore reflecting a year-on-year growth of 34.93%. Total income rose to Rs.2561.25 crore from Rs.1786.65 crore showing a rise of 43.35%.

The Gross NPA was down to 1.45% from 1.52%. The Net NPA stood at 0.29% with a Provision Coverage Ratio of 80.03%.

Q3 Net profit increased by 10.33% to Rs.124.92 crore from Rs.113.22 crore earned during Q3 of previous fiscal.

Net Interest Income rose by 11.38% and stood at Rs.234.66 crore against Rs.210.69 crore earned during Q3 of previous fiscal. Interest income increased by 48.80% to Rs.856.33 crore from Rs.575.49 crore.

The Bank has added 32 branches and 100 ATMs during the quarter. As on date, the bank has 437 branches and 712 ATMs. The Bank aims to reach a business level of Rs.55000 crore by end-March 2012.

KVB has been recognized as “The Best Small Bank” and “The Fastest Growing Small Bank” by Business World in their evaluation of the Best Banks of 2011.

RESULTS  TABLE

karur vysya Bank	31-Dec-11	30-Sep-11	%dif1	30-Jun-11	%dif2	31-Dec-10	%dif3
Interest on Advances	66655	59463	12.09	54785	21.67	43593	52.9
Income on Investments	18755	17547	6.88	14620	28.28	13478	39.15
Income on Balances With RBI	216	188	14.89	47	359.57	-
Others	7	7	0	-		478	-98.54
Interest Earned	85633	77205	10.92	69452	23.3	57549	48.8
Other Income	8944	7471	19.72	7420	20.54	7038	27.08
Total Income	94577	84676	11.69	76872	23.03	64587	46.43
Interest Expended	62166	55558	11.89	48953	26.99	36481	70.41
Net Intt Income	23467	21647	8.41	20499	14.48	21068	11.39
Employees Cost	6820	6043	12.86	6226	9.54	5337	27.79
Other Oprting Expenses	6618	7308	-9.44	5167	28.08	4807	37.67
Oprting Expenses	13438	13351	0.65	11393	17.95	10144	32.47
Total Expdr(excl.provisions)	75604	68909	9.72	60346	25.28	46625	62.15
Operating Profit	18973	15767	20.33	16526	14.81	17962	5.63
Provisions	3602	1329	171	3761	-4.23	1430	151.89
Profit before tax	15371	14438	6.46	12765	20.42	16532	-7.02
Tax Expense	2879	3107	-7.34	1095	162.92	5210	-44.74
Net Profit	12492	11331	10.25	11670	7.04	11322	10.33
Face Value (Rs.)	10	10	0	0		10	0
Paid-up Equity	10718	10715	0.03	10092	6.2	7621	40.64
Capital Adequacy Ratio	13.25	14.02	-5.49	12.72	4.17	12.13	9.23
Basic EPS	11.66	10.57	10.31	11.56	0.87	14.86	-21.53
Gross/Net NPA	6434	5823	10.49	3883	65.7	3175	102.65
% of Gross/Net NPA	0.29	0.29	0	0.21	38.1	0.19	52.63
Return on Assets	1.49	1.49		1.65	-9.7	1.84	-19.02
Public holding (%)	96.74	96.73		96.55	0.2	96.49	0.26

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