Karur Vysya Bank Says It’s Financial Position Is Strong
Further, the private sector lender said that it has healthy liquidity levels.
Private sector lender Karur Vysya Bank Ltd. on Wednesday said it is well capitalised, profitable and a "fundamentally strong" institution.
Earlier in the day, peer lender RBL Bank had also issued a similar statement in the wake of various rumours post the Yes Bank crisis. "KVB is highly capitalised, with its Capital to Risk-Weighted Assets Ratio at 15.87 percent against the regulatory requirement of 10.875 percent. It is a consistently profitable bank. KVB has the distinction of being consistently profitable throughout it's of 104-year history," it said in a statement.
Further, the private sector lender said that it has healthy liquidity levels. "KVB manages its liquidity on a conservative basis to ensure that customer needs are met immediately. In keeping with this philosophy, KVB's liquidity coverage ratio (a ratio that measures the liquidity available versus uses over a prescribed period) is 306.23 percent against a regulatory requirement of 100 percent.
"This indicates a very high level of liquidity to meet any obligations," it added. The bank said in customer servicing, it ensures that high levels of capital and liquidity are maintained while prudently managing the risks.
"KVB is a fundamentally strong institution across all relevant parameters. Taking advantage of the opportunities presented in India, KVB continues to grow prudently. KVB's investment in digital technology has enabled it to attract new customer segments while deepening relationship with existing customers," it added. Karur Vysya Bank said it has built a reputation for putting its customers first at all times.
"This includes our deposit customers whose interests have always been protected by ensuring high levels of capitalisation, prudent liquidity management, high-quality risk management, and consistent profitability," it added. The stock of KVB closed at Rs 36.70 on BSE, up 2.95 percent.