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Friday, November 6, 2015

Vijaya Bank Q2 net drops 20% to Rs. 115 cr

Vijaya Bank on Friday reported a 19.80 per cent fall in its July-September quarter net profit at Rs. 115.29 crore, impacted by higher provisions.

The bank had registered a net profit of Rs. 143.75 crore in the corresponding quarter last year.

Total income of the bank stood at Rs. 3,202.89 crore for the quarter ended September 30, 2015 from Rs. 3,253.75 crore in the corresponding quarter a year ago.

“Even though there is increase in the operating profit, but because of the increased provision net profit has come down. This quarter we had to make a provision of Rs. 283 crore, out of that Rs. 272 crore was only on account of NPAs. Because of the increased provision for NPAs, net profit has come down,” Vijaya Bank MD & CEO Kishore Sansi told reporters here.

“Net slippage is around Rs. 600 crore in this quarter and most of it has come from infrastructure and large corporates,” he added.

The bank’s gross NPA ratio as on September 30 was 3.98 per cent against 2.85 per cent during the corresponding period last year, while the net NPA stood at 2.84 per cent as against 1.88 per cent last year.

The provision coverage ratio was at 58.28 per cent at the end of September quarter.

Net interest income for three months ended September 2015 increased to Rs. 692.55 crore from Rs. 578.70 crore for the corresponding period last year, up by 19.67 per cent.

Other income of the bank increased from Rs. 169.85 crore in the second quarter of last fiscal to Rs. 193.93 crore for the corresponding period this year, up by 14.18 per cent.

CASA of the bank increased from Rs. 23,348 crore as of September 30, 2014 to Rs. 25,311 crore this year, up by 8.41 per cent. The percentage of CASA deposits also improved to 20.53 per cent from 18.95 per cent.

Responding to a question on plans to raise capital, Sansi said “We had requested government of India to infuse about Rs. 400 crore of capital. They may take a decision either by end of this quarter or early next quarter, but any case we have a plan to go in for tier-I capital of about Rs. 200 crore and tier-II of about another Rs. 200 crore in the coming quarter.”

“Our objective is to reach a figure of about 11.5 per cent CRAR by March 2016,” he added.

The bank said its total number of branches increased to 1,755 as on September 30 this year, while total number of ATMs stood at 1,496.

Source : Thehindubusinessline


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