Vijaya Bank Q1 profit rises 13% to Rs162 crore
- Modi inaugurates Tuirial power project in Mizoram, says northeast development his top agenda
- Rahul Gandhi takes charge as Congress president
- Coal scam: Madhu Koda awarded 3-year rigorous imprisonment
- Unilever to sell spreads business to KKR for $8 billion
- Samsung is said to plan Feb Galaxy S9, S9 Plus reveal on heels of Apple’s iPhone X
Bengaluru: Public sector Vijaya Bank on Friday reported a 13.37% increase in net profit to Rs.161.66 crore for the first quarter ended 30 June on account of improved net interest margins.
The city-headquartered bank had reported a net profit of Rs.142.59 crore in the corresponding period last year.
Total income rose marginally to Rs.3,295.05 crore during the first quarter, as against Rs.3,289.05 crore in the year-ago period.
Commenting on the performance, the bank’s MD and CEO Kishore Sansi said, “In spite of all the challenges that the banking industry is passing through, we are very happy to announce that there is a steady growth not only in the business, but also in terms of all fundamental parameters both in the net interest margin as also in the net interest income.”
“The reason for increased net profit is the net interest margins have increased, there is more reliance on retail, we have shed our bulk deposits, we have increased our fee based income, we have increased our CD ratio—so all these factors put together have resulted in the increase in the operating profit also,” Sansi told reporters.
Meanwhile, the bank’s asset quality worsened, as its gross non-performing assets (NPAs) rose to 7.31% of the gross advances as of June, sharply up from 3.39% a year ago.
The net NPAs or bad loans stood at 5.42% of the net advances at the end of June, almost double from 2.45% a year ago.
The bank’s provisions (other than tax) and contingencies have risen to Rs.267.82 crore during the quarter, as against Rs.146.38 crore in the year-ago period.
Provision coverage ratio of the bank is at 48.55% as on 30 June. Operating profit for the quarter ended June 2016 increased from Rs.392.75 crore to Rs.458.73 crore registering a growth of 16.80%.
Net interest income of the bank increased from Rs.662.23 crore for June 2015 quarter to Rs.782.64 crore for April-June period of 2016, registering a growth of 18.18%.
Net Interest Margin improved by 41 basis points to 2.54% for June quarter against 2.13% a year ago.