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Wednesday, May 2, 2012

Vijaya Bank Q4 net trebles onlower operating expenses

Vijaya Bank's net profit grew three-fold during the fourth quarter of the last fiscal, on the back of controlled operating expenses.

The bank's net profit stood at Rs 180.99 crore compared with Rs 54.23 crore in the corresponding quarter the previous fiscal. Operating expenses were Rs 367.2 crore (Rs 511.26 crore). Consequently, the bank's operating profits more than doubled to Rs 263.48 crore (Rs 109.96 crore).

“Our operating costs have come down, and overall interest income has increased. The non-interest income has also increased compared with the year-ago period,” Mr H.S. Upendra Kamath, Chairman and Managing Director, Vijaya Bank, said while announcing the results.

The growth in net profits is despite a marginal growth of 3 per cent in net interest income during the quarter.

However, with some large accounts being restructured, Vijaya Bank saw a spike in non-performing assets during the period. Gross NPAs grew to 2.93 per cent (2.56 per cent), while net NPAs increased to 1.72 per cent (1.52 per cent).

Streamlining recovery

Mr Kamath pointed out that the bank added “only Rs 51 crore to the closing gross NPA numbers during the quarter compared with the third quarter”. In the quarter ended December 31, 2011, the bank's gross NPAs stood at Rs 1,667 crore.

“This indicates our recovery performance in Q4 has been good, and we will continue recovery on a war-footing this year too. We hope to streamline and strengthen our recovery mechanism,” he said.

For the fiscal ended March 31, 2012, the bank saw a 11 per cent increase in net profit to Rs 581 crore (Rs 523.82 crore), on the back of a 37 per cent growth in net interest income at Rs 7,988 crore.


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