The Karur Vysya Bank (KARURVYSYA) Q4 02/03 earnings summary

Executive summary

• FY03 net profit reached Rs.124.97 crore, up 15.17% YoY; total income was Rs.648.07 crore, up 10.4%.

• Deposits and advances grew 22.53% and 35.95%, respectively; total business reached Rs.8,466.32 crore at March 2003.

• Rights issue was oversubscribed 1.43x; proposed dividend was 70% on expanded capital, subject to RBI approval.

Financial highlights

• Operating profit was Rs.197.42 crore vs Rs.161.76 crore; net profit was Rs.124.97 crore vs Rs.108.51 crore in FY02.

• Total income rose to Rs.648.07 crore from Rs.587.01 crore; interest earned was Rs.515.61 crore and other income Rs.132.46 crore.

• Net interest spread improved to 2.97% from 2.85% despite the softer interest-rate environment.

• Other income included Rs.68.04 crore net profit on sale of investments, vs Rs.47.32 crore in FY02.

Outlook and guidance

• FY04 targets: deposits of Rs.6,500 crore and advances of Rs.4,400 crore by 31 March 2004.

• Plans included 100% branch and office computerisation, broader core banking deployment, additional ATMs and 15 new branches.

• Fee income growth initiatives included insurance and mutual fund distribution, alongside treasury operations and low-cost deposit mobilisation.