CHENNAI:
Karur Vysya Bank
on Wednesday reported a 24% dip in third quarter
profit
to Rs 115.76 crore as the bank saw lower interest income from its loans and higher expenses.
Third quarter interest earned was Rs 1,411.16 crore, down 7% from Rs 1,352.36 crore in the year-ago quarter. Total income was up marginally by 3.6% to Rs 1,581.26 crore from last year.
The Karur-based private lender made less money from its treasury operations, which fell 18% to Rs 361.53 crore. Segment revenue from corporate banking was nearly flat at Rs 444.20 crore, compared to Rs 449.24 crore generated the previous year. Retail banking, however, posted slight growth of 0.90% to Rs 773.26 crore.
Total expenses increased 9.1% to Rs 1,309.44 crore, as did provision against loan losses by 1.7% to Rs 94.31 crore.
Gross non-performing assets as a percentage of advances worsened to 2.66% to 1.91% in the year-ago quarter. Net NPA rose to 1.68% from 0.96%.
Return on assets (ROA) -- an indicator of a company's profitability measured against its assets -- fell to 0.74% from 1.10%.
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