ING Vysya Bank net dips 18.1% to Rs 143.4 crore in Q1

ING Vysya Bank, the Bangalore-based private sector lender, today reported 18.1% decline in net profit at Rs 143.4 crore for the first quarter ended June 30, 2014 compared to Rs 175.1 crore in the corresponding quarter last year. The total income for the quarter marginally went up by 3.1% to Rs 690.7 crore from Rs 669.9 crore in the same quarter last year.
 

The operating profit for the period also dipped 4% to Rs 314 crore as against Rs 326.9 crore a year ago.

 

Commenting on the performance, Shailendra Bhandari, managing director, said, "We have been indicating for some time that the challenging macroeconomic environment would at some stage also impact our asset quality. We had a few accounts slip to NPA this quarter, however with these large flows, we see stability return to asset quality and believe that fresh movements to NPA should revert to the levels we have normally experienced in the past."

 

The bank has seen a strong pick up in core business with growth in customer assets back to higher than system at 16% and core cost income ratio at 53%. With the addition of 10 new branches during the quarter, the Bank had a network of 563 branches and extension counters, he said.

 

Net Interest Income (NII) for the quarter increased by 8.8% to Rs 463.1 crore from Rs 425.4 crore in the corresponding quarter of the previous year. This was after interest reversal of Rs 20.5 crore in few large stressed accounts. Adjusting for the interest reversals, Net Interest Income (NII) for the quarter increased by 13.7% to Rs 483.6 crore from Rs 425.4 crore in the corresponding quarter of the previous year.

 

The adjusted Net Interest Margins (NIM) is 3.52% compared to 3.56% in the corresponding quarter of the previous year.

 

Gross NPA ratio and Net NPA ratio is at 2.39% and 0.87% respectively as at June 30, 2014. During the quarter one mid sized account, which was restructured earlier under Corporate Debt Restructuring (CDR), became a NPA. Another large account, which though admitted into CDR, was classified as NPA and sold after considering adequate provision.

 

While there was an increase in NPA's, the standard funded restructured assets reduced from 1.59% to 1.33% (of which 93% is under CDR). During the quarter, the Bank also made provision for exposures to entities with Unhedged Foreign Currency Exposures as per RBI guidelines. Provisions and contingencies is Rs 100.8 crore compared to Rs 68.1 crore in the corresponding quarter of the previous year, the Bank said.