Karur Vysya Bank proposes 100 per cent dividend

Chennai: One of the old private sector banks the Karur based The Karur Vysya Bank Ltd has closed the FY07 with a total income and net profit of Rs986.65 crore and Rs160.01 crore. During the previous year the bank had earned a total income of Rs771.45 crore and a net profit of Rs135.35 crore.

For the fourth consecutive year the bank board has proposed 100 per cent dividend to the shareholders.

During the financial year 2006-07 the bank''s interest income from advances portfolio increased 37.06 per cent from Rs453.16 crore to Rs621.11 crore indicating the bank''s thrust in improving its income from advances portfolio. The bank recorded non interest income of Rs119.15 crore.

The bank''s total business went up to Rs16,380.77 crore (deposit Rs9340.29 crore and advances Rs7040.48 crore) for the year under review. Last fiscal the bank did a total business of Rs13132.28 crore (deposit Rs7576.84 crore and advances Rs5555.44 crore).

According to the chairman P T Kuppuswamy, the bank''s capital adequacy ratio stands at 14.51 per cent, in spite of robust growth in advances, as against the regulatory minimum of 9 per cent. The bank achieved the distinction of being the first amongst the old private banks in Tamil Nadu to cross the Rs1000 crore of net owned fund. The bank''s net owned fund at the end of the last fiscal is Rs1063.16 crore.

Last year Karur Vysya Bank reduced its gross non performing assets (NPA) to gross advances to 2.82 per cent (3.91 per cent previous year) and net NPAs to net advances to 0.23 per cent (0.81 per cent previous year) rolling out a series of recovery measures.

The bank is well equipped to migrate to Basel II regime as 100 per cent of the operations are computerized.

For the FY08 Karur Vysya Bank is targeting to reach deposits of Rs12000 crore and advances of Rs9020 crore.