Karur Vysya Bank posted a surprisingly good set of earnings for Q1FY21. Along with a 45% (YoY) rise in net profit at Rs.105.50 crore, the banks asset quality improved.
Gross NPA was down at 8.34% v/s 8.68% and Net NPA too reduced from 3.92% to 3.44%.
Provisions for bad loans and contingencies stood at Rs 337 crore v/s Rs.330 crore (YoY).
The Bank made an aggregate provision of Rs 120 crore for Covid as at 30th June 2020, including an additional provision of Rs 31 crore made during June quarter.
Provision coverage ratio as on June 30 increased to 72.74% v/s 59.05% (YoY).
The stock has reacted positively to this news with the price rising over 4% to Rs.35.80 and continues to trade around Rs.35 levels as of now.