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Tuesday, October 18, 2011

ING Vysya net jumps 53 PC on high NII, lower provision

Mumbai: The Bangalore-based private sector lender ING Vysya Bank today reported a 53 percent spike in its net profit to Rs 115.4 crore in the September quarter driven by higher net interest income (NII)and lower provisioning.

The bank had reported Rs 75.26 crore net income in the corresponding quarter last fiscal.

Total income of the bank rose 31.66 percent to Rs 1,095.53 crore against Rs 832.05 crore reported a year earlier, while net interest income increased 19 percent to Rs 303.6 crore in the reporting quarter, and net interest margin (NIM) stood at 3.35 percent.

"There is some pressure on the NIM due to the high interest rate regime. However, we are hopeful of maintaining our NIM at the current level," Chief Financial Officer Jayant Mehrotra said in a conference call.

He also said cost of deposits was at 6.8 percent and yield on advances was at 11.37 percent in the second quarter. The bank has shown improvement in the asset quality with reduction in both gross non-performing asset (NPA) and net NPA. Gross NPA came down to 2.02 percent from 2.92 percent y-o-y, while net NPA improved to 0.31 percent from 0.81 percent earlier.

"We don't see pressure on asset quality despite repeated rate hikes," Mehrotra said.

The private sector lender has also shown a 22 percent

rise in gross advances to Rs 25,289 crore during this period.

Its deposits grew by 18 percent to Rs 30,712 crore in this second quarter.

The bank, which has a capital adequacy ratio of 15 percent post the rights issue, has no further plans to raise capital during this fiscal.

"After our rights issue, we are adequately capitalised and no further plans to raise capital, even through debt route, is being looked at in the current financial year," Mehrotra said.

The bank raised Rs 970 crore in June through a qualified institutional placement and preferential allotment to augment its capital adequacy ratio and fund future growth.

Provision coverage ratio of the bank improved to 84.8 percent from 72.8 percent an year earlier.

Source: Financial Express


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