ING Vysya Bank Q2 net jumps 53%

The Bangalore-based private sector lender ING Vysya Bank today reported 53% rise in net profit at Rs 115.4 crore in the July-September quarter, driven by higher net interest income (NII) and lower provisioning.

The bank had reported Rs 75.26 crore net income in the corresponding quarter last fiscal.

Total income of the bank rose by 31.66% to Rs 1,095.53 crore against Rs 832.05 crore reported in the year-ago period, while net interest income increased by 19% to Rs 303.6 crore in the reporting quarter. Net interest margin (NIM) stood at 3.35%.

"There is some pressure on the NIM due to the high interest rate regime. However, we are hopeful of maintaining our NIM at the current level," Chief Financial Officer Jayant Mehrotra said in a conference call.

He also said that cost of deposits was at 6.8% and yield on advances was at 11.37% in the second quarter. The bank has shown improvement in the asset quality with reduction in both gross non-performing asset (NPA) and net NPA.

Gross NPA came down to 2.02% from 2.92% year-on-year, while net NPA improved to 0.31 percent from 0.81 percent earlier.

"We don't see pressure on asset quality despite repeated rate hikes," Mehrotra said.

The private sector lender has also shown a 22% rise in gross advances to Rs 25,289 crore during this period. Its deposits grew by 18% to Rs 30,712 crore in this second quarter.

The bank, which has a capital adequacy ratio of 15% post the rights issue, has no further plans to raise capital during this fiscal.

"After our rights issue, we are adequately capitalised and there are no further plans to raise capital, even through debt route is being looked at in the current financial year," Mehrotra said.

The bank raised Rs 970 crore in June through a qualified institutional placement and preferential allotment to augment its capital adequacy ratio and fund future growth.

Provision coverage ratio of the bank improved to 84.8% from 72.8% an year earlier.