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Monday, November 10, 2014

Vijaya Bank Q2 net up 5.53% to Rs143.75 cr

Vijaya Bank has reported a 5.53 per cent increase in net profit for the September quarter at Rs. 143.75 crore on higher income. The bank had reported a net profit of Rs. 136.22 crore in September quarter last fiscal.

Total income for the September quarter this financial year was up 15 per cent to Rs. 3,253.75 crore. Interest income grew 11 per cent while the income on investments rose 28 per cent to Rs. 838 crore. The net interest income, the difference between the interest earned and expended, fell marginally to Rs. 578.70 crore.

Vijaya Bank reported a 12 per cent rise in operating profit at Rs. 306.10 crore. Advances for the quarter increased by 9.95 per cent to Rs. 78,540 crore, while deposits grew a tad higher by 14 per cent to Rs. 1.07 lakh crore.

Priority sector advances were up 27 per cent while agri advances grew 16 per cent. The total retail advances increased 17 per cent to Rs. 16,974 crore, said Vijaya Bank Chairman and Managing Director, V. Kannan. Retail lending accounted for 21.61 per cent of the advances, while credit demand from corporates saw a decline. "There is hardly any demand for credit from corporate sector as no new greenfield or brownfield investments are happening," Kannan said.

Kannan said the bank saw fresh slippage of Rs. 731 crore during the quarter, of which Rs. 300 crore pertained to two accounts mainly in the telecom industry that had gone through restructuring.

Provisions for the non-performing assets (NPAs) grew 17 per cent to Rs. 139.28 crore. The gross NPAs increased by 13 per cent to Rs. 2,239 crore over the corresponding last quarter's Rs. 1,980 crore. The Gross NPA ratio edged up marginally to 2.85 per cent from 2.77 per cent in the corresponding previous quarter. Also, the net NPA ratio saw a marginal increase to 1.88 per cent from 1.75 per cent. The provision coverage ratio stood at 63.10 per cent.

The bank raised Rs. 500 crore through Tier II bonds during October. "We are planning to raise about Rs. 600 crore through a QIP issue some time during the January-March quarter," he added.

Source : The Hindu


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