The Karur Vysya Bank (KARURVYSYA) Q4 05/06 earnings summary

Executive summary

• FY05/06 total business reached Rs.13,277.73 crore, up 16.34% YoY; net profit rose 28.49% to Rs.135.35 crore.

• Net NPA fell to 0.81%; core banking covered all branches, with mobile banking, non-financial net banking and RTGS extended across branches.

Financial highlights

• Total income was Rs.793.96 crore vs Rs.703.92 crore; operating profit was Rs.228.64 crore vs Rs.199.23 crore.

• Net profit was Rs.135.35 crore vs Rs.105.34 crore; EPS was Rs.75.28 vs Rs.58.59.

• Deposits grew 13.56% to Rs.7,576.84 crore; gross advances increased 20.25% to Rs.5,700.89 crore.

• Interest spread was 3.24% vs 3.32% in FY04/05, amid competition for quality assets.

Outlook and guidance

• FY06/07 targets: total business of at least Rs.15,750 crore, net owned funds of Rs.1,000 crore and net NPA near zero.

• Plans included 30 new branches, debit cards for 1 million users, financial transactions through net banking and new demat services.

• FY06/07 was designated the Year of Retail Business, with additional focus on SME credit, under-banked districts and technology-led pan-India coverage.