Bangalore: Spurred by growth of interest income and control over expenditure on interest, Vijaya Bank successfully achieved a turnaround, posting a net profit of Rs143.38 crore in the first quarter of 2009-10 compared to a net loss of Rs76.64 crore in the same period last year.
“Our Q1 core earnings have been very impressive,especially in the light of somewhat slackened business growth. Our net interest income continued to feature progressive improvement sequentially as well as on Q-o-Q basis, leading to a robust growth in operating profit,” said bank chairman and managing director Albert Tauro .
Driven by 53.75% per growth in net interest income,operating profit for Q1 was Rs209.77 crore, compared to Rs154.84 crore for the corresponding quarter last year, he said.
Net profit of Rs143.38 crore was arrived at after reckoning for provision for wage arrears of Rs65 crore, superannuation benefits of Rs44.38 crore, provision for taxes of Rs102.75 crore and non-performing advances to the tune of Rs104.60 crore, Tauro said.
There was write back of provision under investments of Rs158.98 crore, mainly due to efficient management of investment portfolio, he noted, adding return on assets for the quarter worked out to 0.93%.
Tauro said the bank had a business of Rs91,802 crore as on 30 June 2009, comprising deposits of Rs54,895 crore and advances of Rs36,907 crore.