Vijaya Bank net down 72% at Rs 18cr

The fall in the Q4 net profit is after providing Rs 272.12 crore, as against the corresponding provisioning of Rs 126 crore, for incremental mark to market (MTM) dimunition in the value of investments.

Commenting on this results, Prakash P Mallya, CMD, Vijaya Bank said: "The net profit before incremental provision for MTM dimunition in the value of investments is Rs 477.70 crore, recording a growth of 44%.

 

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 yeild 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% to Rs 361 crore, while the operating profit dipped by 3.6% for the full year.

In its regular business also the bank has turned in very poor performance. Net interest income dropped by 13% for the full year to Rs 925 crore from Rs 1071 crore, as cost of deposits has increased. Consequently the net interest margin has gone down to 2.3% from 3%.

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