Core income growth boosts ING Vysya's Q1 net 38% to Rs 130 cr

Bangalore-based private lender ING Vysya Bank today reported 38.4% growth in net profit for the first quarter ended June 30 at Rs 130 crore, driven by a strong growth in core income.

It had a net profit of Rs 94 crore in the same period of last fiscal, ING Vysya Bank Managing Director Shailendra Bhandari told reporters on a post-earnings conference call.

Net interest income (NII) for the quarter increased 31% to Rs 343.3 crore from Rs 262 crore a year ago.

"We have started the year on a strong note with advances growing 22.9% and deposits 14.6%. Net interest margin (NIM) is substantially higher at 3.29% from 3.02%, and our cost to income ratio has improved to 57.7% from 63.5% resulting in a significant gain on operating profit growth of 48.1%," he said.

The bank's asset quality continues to remain healthy with gross NPA at 1.97% and net NPA at 0.19%, against 2.15% and 0.35%, respectively a year ago.

"We did not restructure any assets during the quarter. We achieved an important milestone in the quarter with the network touching 1,001 comprising 527 branches and extension counters, 28 satellite offices and 446 ATMs," Bhandari said.

The bank will add more branches in tier III cities, mostly in Punjab, from the third quarter of FY13, he added.

Other income rose 21.7% to Rs 171 crore during Q1, while total income jumped 27.8% to Rs 514.2 crore and operating cost increased 16.1% to Rs 296.7 crore.

Total deposits rose to Rs 35,878 crore from Rs 31,313 crore a year ago, and current and savings (Casa) deposits grew 13% to Rs 11,936 crore from Rs 10,588 crore, taking the Casa ratio to 33.3% as against 33.8%.

The capital adequacy ratio stood at 13.35% (as per Basel-II). On fund raising plans, he said, "we are have a comfortable CAR as we have raised capital last year. If the need arises we may raise more capital in FY14."