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| Govt banks log robust growth |
| BS Reporters / Hyderabad Jul 26, 2009, 00:31 IST |
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Andhra Bank net jumps 230%, Dena up 68.4% and Vijaya back in black.
Three small public sector banks — Andhra Bank, Dena Bank and Vijaya Bank — have reported robust growth in net profit for the first quarter ended June 2009.
Hyderabad-based Andhra Bank posted the highest growth of 230 per cent in net profit at Rs 256.22 crore over Rs 77.62 crore a year-ago, backed by a rise in its net interest income, fees and commissions. Net interest income rose by 27.46 per cent to Rs 441.37 crore in April-June 2009 compared to Rs 346.26 crore in the previous comparable quarter. Other income comprising streams such as fees, commission and recoveries jumped by 118.9 per cent to Rs 238.07 crore.
Bangalore-based Vijaya Bank returned to black and posted a net profit of Rs 143.3 crore as against a net loss of Rs 76.64 crore in April-June 2008. The rise in net profit was primarily because of Rs 90-crore write-back of marked-to-market provisions.
Its net interest income rose by 53.75 per cent at Rs 341 crore, while its trading income rose by 3.6 times at Rs 72 crore over the corresponding quarter of last year, according to Chairman and Managing Director Albert Tauro.
Dena Bank has posted a 68.4 per cent growth in net profit at Rs 115.02 crore from Rs 68.3 crore a year ago. Its NII rose by 14.51 per cent to Rs 250.5 crore from Rs 218.75 crore.
Dena Bank Chairman and Managing Director D L Rawal said the cost of deposits rose to 6.44 per cent from 6.19 per cent a year ago. The yield on advances improved to 10.5 per cent from 10.04 per cent. Its net interest margin declined to 2.44 per cent from 2.55 per cent. With a series of cuts in domestic deposit rates, the cost of funds is expected to decline in the current financial year.
Andhra Bank Chairman and Managing Director RS Reddy said the bank was staying away from extending big loans to public sector undertakings, which gave lower returns than corporate lending, adding that the cost of deposits too came down during the quarter.
For Andhra Bank, gross non-performing assets (NPAs) came down to 0.8 per cent from 1.15 per cent last year, its net NPAs rose to 0.22 per cent from 0.1 per cent. For Vijaya Bank, gross NPAs moved up to 2.94 per cent from 1.71 per cent a year ago. In absolute terms, gross NPA rose to Rs 1,085.27 crore from Rs 582.87 crore a year ago. Its net NPAs moved up to 1.58 per cent from 0.68 per cent.
Mumbai-based Dena Bank reported a dip in gross NPAs at 2.22 per cent from 2.47 per cent at end of June 2008. However, its net NPAs rose to 1.26 per cent from 1.12 per cent.
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