The Karur Vysya Bank (KARURVYSYA) Q4 01/02 earnings summary

Executive summary

• FY ended 31 Mar 2002: net profit rose 50.60% to Rs.108.51 crore despite recessionary conditions, weak credit demand and pressure on spreads.

• Deposits crossed Rs.4,000 crore; capital adequacy improved to 16.90%, well above the 9% regulatory minimum.

Financial highlights

• Total income increased to Rs.587.01 crore from Rs.515.05 crore; operating profit rose 46.32% to Rs.161.76 crore.

• Net profit was Rs.108.51 crore versus Rs.72.05 crore; provisions and contingencies totaled Rs.53.24 crore.

• Other income reached Rs.104.70 crore versus Rs.53.86 crore, including Rs.47.32 crore net profit on investment sales, compared with a Rs.5.81 crore loss a year earlier.

• Net worth rose 30.82% to Rs.430.11 crore; EPS was Rs.180.85 and book value per share Rs.716.85.

Outlook and guidance

• Branch expansion planned in potential centres; work was underway on a fourth currency chest, in Madurai.

• Computerized branches were expected to capture 95% of business by the end of FY 2002-03, up from 85%; core banking implementation was planned through FLEXCUBE.

• Expected economic recovery, GDP growth of 6.0–6.5% and improved credit offtake underpin the outlook; priorities include lower funding costs and higher fee-based and treasury income.