ING Vysya Bank, the publicly held lender, has posted a 30 per cent growth in net profit for the quarter ended 30 September to Rs 150.2 crore, compared with Rs 115.4 crore in the corresponding quarter of the previous year. This was the twelth sequential quarter of PAT growth. Return on assets improved to 1.26 per cent from 1.12 per cent in the quarter ending September 2011.
Net interest income (NII) for the quarter increased by 21.5 per cent to Rs 368.8 crore from Rs 303.6 crore in the corresponding quarter of the previous year. The net interest margin (NIM) was higher at 3.45 per cent from 3.35 per cent.
Other income was higher by 4 per cent at Rs 168.9 crore, and total income increased by 15.4 per cent to Rs. 537.7 crore. Operating costs for the quarter increased by 12.1 per cent to Rs. 310.0 crore in the quarter ending September 2012. Operating profit increased by 20.2 per cent to Rs 227.6 crore and cost to income ratio improved to 57.7 per cent from 59.4 per cent.
According to the management of ING Vysya Bank, there was a one-off reduction in other income of Rs 21.9 crore, (as per our conservative interpretation of the relevant RBI circular) on a mark-to-market receivable from one client in a derivatives contract "where we have unwound the outstanding receivable and converted the entire amount into a term loan at the client’s request."
Adjusting for this one-off reversal, other income has grown by 17.4 per cent with strong growth across core products, total income grew by 20.1 per cent, operating profit grew by 31.7 per cent and cost to income ratio improved to 55.4 per cent from 59.4 per cent.
Provisions and contingencies reduced to Rs. 6.4 crore from Rs 17.5 crore in the corresponding quarter of the previous year. Asset quality continued to be robust with Gross NPA ratio and Net NPA ratio at 1.90 per cent and 0.13 per cent respectively as at 30 September 2012 compared to 2.02 per cent and 0.31 per cent respectively as at 30 September 2011.
Commenting on the results, Managing Director, Shailendra Bhandari said: “Our gross advances grew by 21 per cnet notwithstanding the repayment in one large account. There was significant improvement in NIM at 3.45 per cent and ROA at 1.26 per cent for the quarter. Our asset quality continues to remain healthy with Gross NPA at 1.90 per cent, Net NPA at 0.13 per cent and PCR at 93.1 per cent.”
