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.

anju@thehindu.co.in

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Bank of India net jumps 2-fold; to pay 70% dividend

Bank of India (BoI) has reported a near two-fold rise in net profit to Rs 952.73 crore for the fourth quarter ended March 31, 2012.

The bank had posted a net profit of Rs 493.64 crore in the year-ago period.

Total income rose to Rs 8,777.73 crore during January-March period of 2011-12 from Rs 7,130 crore during the corresponding period of the previous fiscal, BoI said in a filing to the BSE.

The bank has recommended a dividend of 70 per cent or Rs 7 per share for 2011-12.

For the financial year ended March 31, 2012, BoI posted a net profit of Rs 2,677.52 crore, up 7.58 per cent compared with Rs 2,488.7 crore in the previous fiscal.

Total income during the fiscal under review rose to Rs 31,801.84 crore from Rs 24,393.5 crore in 2010-11.

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Oriental Bank net dips 20.6% in Q4

Oriental Bank of Commerce has reported a 20.6 per cent decline in net profit for the fourth quarter ended March 31, 2012 at Rs 264.90 crore (Rs 333.66 crore).

The bank has recorded a 29.23 per cent increase in total income for the quarter under review at Rs 4,564.50 crore (Rs 3,532.13 crore).

For the year ended March 31, 2012, OBC recorded a 24 per cent decline in net profit at Rs 1,141.56 crore (Rs 1,502.87 crore), according to a filing with the Bombay Stock Exchange.

Total income during the period increased 30.71 per cent to Rs 17,055.13 crore (Rs 13,047.89 crore)

The results had an impact on the counter with the scrip shedding Rs 12.70 or 5.26 per cent to Rs 228.90 with a trading volume of 3.40 lakh shares on the BSE an hour before the close of trading.

The two-week average trading volume in the counter was around 24,000 shares.

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Syndicate Bank launches jewel loan mela

Syndicate Bank has launched a ‘Jewel Loan Maha Mela’ to extend loans on the pledge of gold ornaments.

“The loans will carry an interest rate of base rate plus 1.25 pc interest, which works out to 11.75 per cent as of now,’’ Mr T. R. Viswanatham Nair, General Manager, Syndicate Bank, Hyderabad Region, told newspersons here on Monday.

Syndicate Bank is targeting disbursal of Rs 100 crore of loans during the mela period from May 1, 2012, to September 30, 2012.

“We have also made products suitable for all categories of customers, besides increasing the finance to Rs 1,900 per gram,’’ Mr Nair said.

The Bangalore-based bank will also focus more on the housing loans segment. It has waived the provision for surety/guarantor and is offering loans at 10 per cent interest for loans below Rs 20 lakh. For loans up to Rs 25 lakh, the interest rate has been fixed at 10.50 per cent with effect from May 1, 2012, he added.

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Union Bank to open 300 branches this fiscal

Union Bank of India will open around 300 branches and recruit more people this fiscal.

Speaking to presspersons on the sidelines of a function to inaugurate the new regional office of the bank here on Monday, Mr D. Sarkar, Chairman and Managing Director, said that the bank has nearly 3,300 branches across the country.

“We are planning to open 300 branches this fiscal,” he said.

Recruitment

With the expansion plans on the way, recruitment will also follow. The bank may need to recruit around 4,000 people.

Stating that it is a rough estimation, he said the requirement includes officers, clerical staff and sub-staff.

Terming the recruitment as an ongoing process, Mr Sarkar said nearly 2,500 officers are in the process of joining the bank this fiscal.

Union Bank, which has around 3,850 ATMs in the country, will increase it to nearly 5,000 ATMs by the end of the current fiscal.

vinayakaj@thehindu.co.in

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