ING Vysya net profit down 18.3%

Loss due to one time exceptional item of Rs 61 crore

ING Vysya Bank has reported a 18.3 per cent drop in net profit to Rs 139 crore in the fourth quarter of financial year 2013-14. The bank, explaining the drop in net profit, said they had to book an exceptional expense of Rs 61 crore to comply with an Indian Banks' Association circular regarding provision on superannuation. Adjusting for the exceptional item, net profit was up five per cent to Rs 179 crore.

ING Vysya Bank said its net interest income, the difference between the revenue that is generated from a bank's assets and the expenses associated with paying out its liabilities, rose by 11 per cent to Rs 471 crore, while its other income too grew by 11 per cent to Rs 223 crore, adding to a total income growth of 11 per cent to Rs 694 crore.

The net interest margin was marginally up to 3.74 per cent from 3.73 per cent, while the operating profit grew by nine per cent to Rs 311 crore. The cost to income ratio was at 64 per cent and adjusting for the exceptional item it was at 55.2 per cent from 54.4 per cent.

The return on assets was at 0.99 per cent and adjusting for the exceptional item, return on assets was at 1.28 per cent. The bank reported a CASA (current account to savings account) ratio of 33.4 per cent from 32.5 per cent.

"The macroeconomic environment continues to remain challenging, though we are now witnessing some very early signs of a turnaround. We continued to grow our business whilst maintaining asset quality and improving our core operating leverage," Shailendra Bhandari, the bank's MD, said in his post-earnings comments.

The bank reported a net NPA (non-performing asset) ratio of 0.28 per cent for the quarter as compared to a 0.03 per cent during the corresponding previous quarter.

On full financial year ended March 31, 2014, net profit grew by 7 per cent to Rs 657 crore on an net interest income growth of 14 per cent at Rs 1753 crore. Total income moved up by 16 per cent at Rs 2620 crore.

The stock of ING Vysya Bank rose marginally by 0.33 per cent on Tuesday to close at Rs 550.60 on NSE.