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| Yes Bank, ING Vysya post healthy profits, OBC lags |
| BS Reporters / Mumbai/Bangalore Jul 22, 2009, 00:01 IST |
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Despite a rise in non-performing assets (NPAs), two private sector lenders – Yes Bank and ING Vysya – managed to report a healthy growth in profits during the first quarter of FY10, while a decrease in non-tax provisions helped Oriental Bank of Commerce register a 16.73 per cent rise in net profit.
Oriental Bank of Commerce
The Delhi-headquartered public sector bank today said that its net profit rose to Rs 257.41 crore in Q1 as against Rs 220.52 crore during April-June last year. Buoyed by a 90 per cent increase in other income, the bank’s total income went rose 29.50 per cent to Rs 2,796.10 crore. As expenses grew at a slower pace, it helped OBC register a 46 per cent rise in operating profit.
But with non-tax provisions falling from Rs 207.13 crore for the quarter-ended June 2008 to Rs 151.35 per cent, the bank managed to report a 16.73 per cent growth in net profit. And, unlike the private players, OBC said that the stock of gross as well as net NPAs fell marginally.
Yes Bank
The private sector lender reported an 84 per cent growth in net profit to Rs 100.07 crore despite a sharp rise in non-tax provisions on account of a high level of loan defaults. The private sector lender’s non-tax provisions shot up over five times to Rs 45.53 crore during the quarter-ended June 2009, as against Rs 8.41 crore in the corresponding period last year. This was mainly due to a near three-fold jump in gross non-performing assets from Rs 21.3 crore at the end April-June 2009 to Rs 61.41 crore during the first quarter of the current financial year.
Yes Bank said it was looking to raise around Rs Rs 1,200 crore equity through preferential allotment or a qualified institutional placement. The bank is, however, expected go for the fund-raising towards the end of FY10 in anticipation of an improvement in valuation and investor appetite.
ING Vysya Bank
The Bangalore-headquartered private sector player today said that its net profit went up by 48.31 per cent to Rs 60.26 crore during the quarter-ended June 2009, as against Rs 40.63 crore y-o-y.
Like Yes Bank, ING Vysya too saw an increase in bad debt, with the stock of gross non-performing assets rising by 69.26 per cent to Rs 205.79 crore at the end of June 2009.
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