Profit booking on the counters of Karur Vysya, post its Q3FY16 results led the stock end the day in the red. This is despite a decent increase in profitability and asset quality remaining stable.

The Bank posted a 34% (YoY) rise in net profit at Rs.153 crore. This was on the back of a healthy 15% rise in NII at Rs.448 crore. Non-Interest income rose 17% at Rs.173 crore. What also helped was the 26% (QoQ) decline in provisions at Rs.93 crore. The profit would have been higher but for the doubling of tax outgo to Rs.80 crore.

In terms of asset quality, Gross NPA fell marginally by 5 bps from 1.96% to 1.91% (QoQ) and Net NPA remained status quo at 0.96%. During the quarter, the Bank sold assets worth Rs.98 crore to asset reconstruction companies. Provision coverage was at 75.2%.