ING Vysya Bank gains after strong Q3 results

The result was announced after market hours on Monday, 28 January 2013.

Meanwhile, the BSE Sensex was down 17.79 points, or 0.09%, to 20,085.56.

On BSE, 7,243 shares were traded in the counter as against an average daily volume of 23,311 shares in the past one quarter.

The stock hit a high of Rs 589 and a low of Rs 580 so far during the day. The stock had hit a record high of Rs 600 on 16 January 2013. The stock had hit a 52-week low of Rs 310.55 on 4 June 2012.

The stock had outperformed the market over the past one month till 28 January 2013, rising 9.61% compared with the Sensex's 3.39% rise. The scrip had also outperformed the market in past one quarter, rising 24.93% as against Sensex's 7.94% rise.

The mid-cap bank has an equity capital of Rs 153.79 crore. Face value per share is Rs 10.

ING Vysya Bank's return on assets improved significantly to 1.30% in Q3 December 2012 from 1.13% in Q3 December 2011.

Net Interest Income (NII) for the quarter increased by 24.5% to Rs 402.90 crore from Rs 323.6 crore in the corresponding quarter of the previous year. The Net Interest Margins (NIM) was higher at 3.61% from 3.49%. Other income was higher by 9.8% at Rs 186.60 crore and total income increased by 19.5% to Rs 589.5 crore.

Operating costs for the quarter increased by 15.6% to Rs 326.2 crore in the quarter ending December 2012. Staff cost for the quarter includes provision towards the proposed revision in scales for those employees who will be covered by the 10th Bipartite settlement between the IBA and bank unions.

Operating profit increased by 24.6% to Rs 263.30 crore and cost to income ratio improved to 55.3% from 57.2%. Provisions and contingencies reduced to Rs 24.60 crore from Rs 33.40 crore in the corresponding quarter of the previous year.

Asset quality continued to be robust with Gross non-performing assets (NPA) ratio and Net NPA ratio at 1.77% and 0.05% respectively as at 31 December 2012 compared to 2.01% and 0.31% respectively as at 31 December 2011.

Total deposits were Rs 37691 crore at the end of December 2012, up from Rs 31654 crore as at the end of December 2011. Current and Savings (CASA) deposits grew by 16% to Rs 11934 crore from Rs 10315 crore as at end of December 2011. CASA ratio was at 31.7% of total deposits as at the end of December 2012 as against 32.6% at the end of December 2011.

Gross Advances grew by 20% to Rs 32153 crore at the end of December 2012 from Rs 26752 crore as at end of December 2011. The growth in advance is notwithstanding the repayment in two large Telecom accounts during the period amounting to over Rs 1800 crore, otherwise the advance growth would have been significantly higher. The Credit Deposit Ratio stood at 83.8% as at December 2012 as against 83.1% as at December 2011. The Capital Adequacy Ratio (CAR) of the bank as at 31 December 2012 was 12.47% (as per Basel-II).

Commenting on the results, Managing Director, Shailendra Bhandari said: "We continue to deliver on our core parameters. Our gross advances grew by 20% during the year notwithstanding the repayments in two large accounts. There was significant improvement in NIM at 3.61% and ROA at 1.30% for the quarter. Our asset quality continues to improve with Gross NPA at 1.77%, Net NPA at 0.05% and PCR at 97.2%."

During the quarter the Bank expanded its network with 5 new branches and 6 ATMs. As of December 2012, the Bank had 532 branches and extension counters, 28 satellite offices and 453 ATMs.

ING Vysya Bank is a private sector bank with retail, private and wholesale banking platforms that serve over two million customers. The bank offers a broad range of innovative and established products and services, across its 532 branches.

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