Vijaya Bank net rises 3.3 times to Rs 37 cr in Q3

Total income goes up 14.9% to Rs 3,302.67 cr compared to Rs 2,874 cr a year ago

Bengaluru-based public sector lender Vijaya Bank on Friday announced 3.3 times growth in net profit at Rs 37.40 crore for the quarter ended December 2014.  In the corresponding quarter the previous year, its profit was Rs 11.4 crore in the corresponding quarter last year. The total income went up 14.9 per cent to Rs 3,303 crore compared to Rs 2,874 crore a year ago. The operating profit was up 109 per cent to Rs 351 crore.

“The rise in profits was aided by a 12.1 per cent rise in net interest income at Rs 555 crore, its highest in any quarter, and treasury profit of Rs 158 crore,” Kishore Sansi, the managing director and chief executive officer of the bank said. The net interest margin improved by two basis points to 1.9 per cent compared to 1.88 per cent a year ago.

The bank has managed to shed Rs 4,800 crore worth of high cost deposits during the third quarter.

Another Rs 8,000 crore high-cost deposits will be either reprised or shed during the fourth quarter, Sansi said.

The bank’s net non-performing assets increased to 1.89 per cent from 1.57 per cent a year ago. It stood at Rs 72 crore.

The provision coverage ratio stood at 65.77 per cent. The percentage of CASA deposits improved to 19.08 per cent from 17.84 per cent.

The capital adequacy ratio under Basel-III dipped to 10.57 per cent from 10.78 per cent a year ago.

The bank’s shares closed 1.84 per cent higher at Rs 49.70 per share on BSE.