The Karur Vysya Bank (KARURVYSYA) Q4 03/04 earnings summary

Executive summary

• Total business reached Rs.10,012.62 crore at 31 Mar 2004, up 17.18% YoY; net profit rose 28.87% to Rs.161.05 crore.

• Ranking highlights included second among 21 old private-sector banks and recognition as the only bank among 21 fastest-growing listed companies in a survey of 483.

Financial highlights

• Total income increased to Rs.721.87 crore from Rs.648.07 crore; operating profit was Rs.214.55 crore versus Rs.197.42 crore.

• Net profit rose to Rs.161.05 crore from Rs.124.97 crore; deposits grew 15.42% to Rs.5,911.47 crore and gross advances grew 19.81% to Rs.4,101.15 crore.

• Interest spread widened to 3.36% from 2.97%; net worth increased 27.45% to Rs.712.03 crore.

• Other income declined to Rs.74.24 crore from Rs.132.45 crore, while interest earned increased to Rs.647.62 crore from Rs.515.60 crore.

Outlook and guidance

• FY04-05 plans included CBS rollout to all branches in phases, 15 new branches, more than 60 additional ATMs, aggressive retail banking expansion and RTGS readiness.

• Priorities included low-cost deposits, cost control, broader customer reach and increased fee income, with a focus on bancassurance.

• Plans called for converting another 100 branches to CBS in FY04-05 after 56 branches/offices joined CBS during FY03-04.