ING Vysya net up 38%

Falling cost of funds and healthy growth in core business helped private sector lender ING Vysya Bank to post 38 per cent growth in net profit to Rs 67.9 crore for the quarter ended March.

This growth was helped mainly by a 52 per cent rise in net interest income at Rs 247 crore.

Total income increased to Rs 425.8 crore in the quarter from Rs 309.5 crore in the corresponding quarter of the previous year. “Total income includes an exceptional income of around Rs 31 crore on account of capitalisation of amount paid for allotment of land on lease,” the bank said.

Its cost of deposits came down which helped the Bangalore-based lender to improve its net interest margin (NIM) by 100 basis points. NIM was 3.6 per cent during the fourth quarter. Its cost to income ratio came down to 51 per cent from 61 per cent.

For 2009-10, the bank’s bottom line improved by 28 per cent to Rs 242 crore, while net interest income was up 28 per cent. NIM for the full year was 3.2 per cent.

The share of low-cost deposit also improved during FY10 at 32.6 per cent as on end March, compared with 27 per cent a year ago. The provision coverage ratio (PCR) stood at 60.2 per cent as on March-end, compared with 36 per cent during the same period of the previous year. The Reserve Bank of India (RBI) has mandated banks to attain PCR of 70 per cent by September-end.