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| Vijaya Bank net down 20.65% |
| BS Reporter / Chennai/ Bangalore Jan 27, 2010, 00:46 IST |
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Bangalore-based public-sector lender Vijaya Bank reported a 20.65 per cent decline in net profit to Rs 124.57 crore for the third quarter-ended on December 31, 2009, compared with Rs 156.99 crore in the corresponding quarter last year. The bank has attributed the dip to low earnings from treasury and provision of Rs 113.17 crore for a non-performing asset.
The bank’s total income too fell 11.47 per cent to Rs 1,447.41 crore. However, it recorded a growth of 45.21 per cent in net interest income to Rs 454.58 crore aided by an 80 bps reduction in cost of deposits. There was a rise of 6.71 per cent in operating profit to Rs 298.88 crore. Net interest margin also rose up to 2.80 per cent from 2.38 per cent in the third quarter of the previous year.
“Our numbers need to be seen in the light of the subdued earnings from treasury during the Q3 in the face of hardened benchmark yields. Significantly, our core earnings have made good the moderated treasury earnings as evident from a strong growth in our Net Interest Income,” said Albert Tauro, CMD, Vijaya Bank.
Net NPA for the quarter was 1.3 per cent compared with 0.73 per cent last year. The NPA provision coverage ratio was at 65 per cent, which Tauro said was a matter of concern and was looking to take it to the mandated 70 per cent by March 2010. Capital adequacy ratio was 13.34 per cent.
Aggregate business stood at Rs 98,272 crore — deposits at Rs 58,928 crore and advances at Rs 39,343 crore.
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