Stating that the net NPA level has been further reduced to 1.36 per cent, the MD and CEO of KVB said that it was the bank’s endeavor to bring it below 1% level by March 2023.
Stating that the net NPA level has been further reduced to 1.36 per cent, the MD and CEO of KVB said that it was the bank’s endeavor to bring it below 1% level by March 2023.
Karur Vysya Bank Limited (KVB) plans to bring down its gross and net non-performing assets (NPA) below 3% and 1% respectively by March 23.
“Due to less slippage, recovery and technical write-off, gross NPAs have come down to 3.97% (during Q2/FY23). We plan to bring it down to below 3% level by March 2023,” MD & CEO, B. Ramesh Babu said during an earnings call.
Stating that the net NPA level was further reduced to 1.36%, he said it was the bank’s endeavor to bring it down below 1% level by March 2023.
During the second quarter, the gross slippage was ₹131 crore or about 1% of the loan book on an annualized basis and in line with the bank’s guidance. Further, the bank reported negative net slippage of ₹74 crore. “This is the fifth consecutive quarter in which we were able to maintain this trend of negative net slippage,” he added.
According to him, the bank technically wrote off ₹576 crore for balance sheet management. “The recovery from this segment is showing a spurt and we expect improvement on this front for the rest of the year,” he said. There were no sales to asset reconstruction companies during the quarter.
Mr. Babu reiterated that they continue to focus on low cost deposits to offset the impact of the recent hike in fixed deposit rates and keep the increase in financing cost at a minimum.
The private sector lender has always considered MSME as a main focus area. In the past, loans up to ₹5 crore were handled in branches.
“We are now in the process of creating an emerging small business hub under the small business conglomerate which focuses exclusively on MSME business, which is less than Rs 5 crore,” he added.