The bank's retail banking income fell to Rs 929.80 crore during the quarter under review from Rs 981.33 crore in the year-ago period, while interest income was lower at Rs 1,376.10 crore as against Rs 1,492.53 crore.
Asset quality improved, with gross non-performing assets (NPAs) falling to 8.34 per cent of gross advances as on June 30, 2020 from 9.17 per cent a year ago.
In value terms, gross NPAs fell to Rs 4,055.66 crore from Rs 4,510.83 crore.
Net NPAs or bad loans also reduced to 3.44 per cent (Rs 1,585.23 crore) from 4.94 per cent (Rs 2,321.77 crore) a year ago.
Provisions for bad loans and contingencies stood at Rs 337.57 crore, slightly higher than Rs 329.97 crore a year ago.
Capital adequacy ratio improved to 18.14 per cent at the end of June 2020 from 15.99 per cent a year ago, it said.
The bank said the measures taken by the government to contain coronavirus pandemic has led to a slowdown in economic activities, and these are likely to impact its operations and results.
The severity of the impact of Covid-19 will depend on future developments, which are highly uncertain at present, as well as the measures are undertaken to mitigate the same, it said.
KVB said it has made an aggregate provision of Rs 120.01 crore for Covid-19 as on June 30, 2020, including an additional provision of Rs 31.12 crore made during June quarter.
"The provision made by the bank is more than the requirement as per RBI guidelines dated April 17, 2020," it added.
Provision coverage ratio as on June 30 increased to 72.74 per cent from previous year's 59.05 per cent, the bank said in the filing.
Shares of Karur Vysya Bank
on Thursday closed 10.97 per cent higher at Rs 34.40 on the BSE.