The Karur Vysya Bank (KARURVYSYA) Q4 99/00 earnings summary

Executive summary

• FY2000 net profit reached a record Rs.71.14 crore, up 92.06% YoY, amid intense competition and pressure on spreads.

• Deposits grew 21.78% and advances 24.82%; capital funds rose 33.93%, supporting a stronger capital adequacy ratio.

Financial highlights

• Total income rose 25.76% to Rs.475.83 crore; gross profit increased 76.97% to Rs.109.10 crore.

• Net profit was Rs.71.14 crore versus Rs.37.04 crore; after Rs.37.96 crore in provisions and contingencies, including tax, loan-loss and investment items.

• Interest income reached Rs.418.03 crore, up from Rs.337.62 crore; other income was Rs.57.80 crore versus Rs.40.73 crore.

• Interest expense rose to Rs.281.00 crore from Rs.246.91 crore; operating expenses increased to Rs.85.73 crore from Rs.69.79 crore.

• EPS increased to Rs.118.57 from Rs.61.73; book value per share rose to Rs.434.50 from Rs.324.43.

Outlook and guidance

• Plans included additional branches in Mangalore, Kangeyam, Old Delhi, Jaipur, Chennai and Bangalore, plus a Chennai currency chest.

• Management aimed to pursue growth opportunities and use updated IT to improve customer service, speed and accuracy while sustaining profitable growth.