Vijaya Bank profit declines 72%

CORPORATE SCOARCARD

This fall in the Q4 net profit is after providing Rs 272.12 crore, against the corresponding provisioning of Rs 126 crore, for incremental mark to market (MTM) dimunition in the value of investments.Prakash P Mallya, CMD, Vijaya Bank, said: "The net profit before incremental provision for MTM dimunition in the value of investments is Rs 477.7 crore, recording a growth of 44 per cent. We suffered MTM dimunition in the value of investments amounting to Rs 272.12 crore during the quarter ended March 31, 2008, due to adverse movement in the bond yield and volatility in the equity market during the last fortnight of the quarter."

This provisioning has also affected the bank's net profit for the full year as it grew by only 9 per cent to Rs 361 crore, while the operating profit dipped by 3.6 per cent for the full year.

The gross NPA ratio for 2007-08 is 1.6 per cent against 2.29 per cent in 2006-07, while the net NPA ratio is 0.57 per cent against 0.59 per cent. The return on average assets dipped to 0.75 per cent for FY08 from 0.92 from FY07.