The Karur Vysya Bank (KARURVYSYA) Q4 07/08 earnings summary

Executive summary

• FY08 net profit rose 30.2% YoY to Rs 208.33 cr; deposits grew 34.36% and advances 33%.

• Total income increased 30.69% to Rs 1,289.33 cr; net interest income rose 5.73% to Rs 366.99 cr.

Financial highlights

• Interest income reached Rs 1,134.03 cr vs Rs 867.40 cr; other income was Rs 155.30 cr vs Rs 119.15 cr.

• Operating profit was Rs 307.76 cr; net profit was Rs 208.33 cr vs Rs 160.01 cr in FY07.

• Interest expense rose to Rs 765.35 cr from Rs 520.29 cr; operating expenses were Rs 216.22 cr vs Rs 192.48 cr.

• EPS increased to Rs 38.62 from Rs 32.80; total assets reached Rs 14,583.03 cr vs Rs 11,079.01 cr.

Outlook and guidance

• Healthy economic growth, infrastructure investment and government focus on rural development were expected to support banking business growth.

• FY09 plans included additional branches, low-cost deposit mobilization, fee income growth, cost reduction and products tailored to customer demand.

• Basel II implementation was scheduled to apply from 31 March 2009; asset quality improvement and stronger risk controls were priorities.