Vijaya Bank Q2 net profit rises 33%

DUBAI — Vijaya Bank posted a net profit of Rs144.30 crore for the second quarter of the current financial year as against Rs108.42 crore for the corresponding quarter last year, registering a 33.08 per cent growth.

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Published: Wed 27 Oct 2010, 10:46 PM

Last updated: Mon 6 Apr 2015, 11:45 AM

The bank’s operating profit growth for the second quarter was at 26.46 per cent, amounting to 295.85 Crore. “Consistent growth in core earnings has been Vijaya Bank’s forte during the last several quarters. Second quarter of the current year has been no different,” said Albert Tauro, C&MD of the Bank at Bangalore.

A 34 per cent growth in Net Interest Income (NII), improvement in Net Interest Margin (NIM) to 3.16 per cent from 2.39 per cent Y-o-Y and improved Return on Assets of 0.81 per cent reflect continuous improvement in Bank’s key financials, Tauro added. Improved margins were mainly as a result of higher Yield on Advances (10.20 per cent) and lower Cost of Deposits (5.64 per cent).

Cumulatively, for the first half of the current financial, the trends are similar. higher operating profit of Rs610.11 crore registering a growth of 37.50 per cent and net profit of Rs317.78 crore which showed an improvement of 26.20 per cent were driven by 40.03 per cent growth in NII and NIM of 3.01 per cent which was at 2.36 per cent for the previous half year ended on 30.09.2009. Strong growth in cumulative profits also improved Bank’s Return on Assets from 0.77 per cent to 0.89 per cent.

Aggregate business of the Bank stood at Rs1,02,473 crore, comprising Rs62,688 crore of deposits and Rs39,805 crore of advances. Priority sector advances of the Bank aggregated to Rs14,521 Crore. Within priority advances, agricultural loans were of the order of Rs4622 Crore, while loans to MSME sector clocked a 28.26 per cent growth to reach Rs6,272 Crore. Educational loan portfolio of the Bank was at Rs592 Crore while loans to weaker sections stood at Rs3,633 crore.

As regards asset quality, Gross NPA ratio and Net NPA ratio of the Bank stood at 2.44 per cent and 1.32 per cent respectively, coming down from 2.91 per cent and 1.46 per cent respectively from the corresponding period last year.

Capital to Risk Weighted Assets ratio ( Basel II) stood at 14.25 per cent as at September 30, 2010, comprising Tier-I ratio of 9.64 per cent and Tier II ratio of 4.60 per cent.

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