Vijaya Bank sees dip in net profit

Vijaya Bank has reported a 43.3 per cent decline in net profit in the quarter ended June owing to higher provisioning.

The net profit stood at Rs 144.34 crore.

In the corresponding April-June quarter of 2017-18, the public sector bank had made a net profit of Rs 254.69 crore, managing director and chief executive officer of the bank, R S Sankara Narayanan told reporters here today.

"We have provided Rs 440 crore asprovisioning, which we have improved from 56 per cent to 61.18 per cent. Hence, the dip in net profit," he said.

The total income rose to Rs 3,935.77 crore from Rs 3,510.11 crore a year ago, he said.

The gross non-performing assets (NPAs) fell to 6.19 per cent of the gross advances from 7.3 per cent, the managing director said.

NPA is under control, he said, adding that the bank aims at gross and net NPAs below six per cent and four per cent, respectively in September.

In the quarter ended December, the NPA had stood at 3.9 per cent. In absolute terms, gross NPAs however rose to Rs 7,579.11crore as on June 30, 2018 as against Rs 6,812.21 crore a year ago, the officialsaid.

Net NPA value was Rs 4,903.92 crore compared with Rs 4,784.26 crore a year ago, he said.

During the quarter, the bank is certain to recover money from Electrosteel Steels and Bhushan Steel, which have been taken over by Tata Steel he said.

"We had two cases resolved in the National Company Law Tribunal. One was taken over by Tatas which has been accounted for uniformly by all banks. The other bidder Electrosteel had gone to the tribunal for an appeal. Wewill welcome if the new bidder pays higher than whatVedanta has paid," hesaid.

As reported earlier, Bhushan Steels had a loan outstanding of Rs 56,000 crore, the managing director said.

Tatas have taken over the company for Rs 35,200 crore and hence one NPA account is resolved, the official said.

The dues to the banks from Electrosteel were Rs 13,600 crore, he said.

Sterlite of Vedanta group purchased it for Rs 5,320 crore.