VIJAYA BANK NET DOWN 20.65%; MARGINS RISE

Vijaya Bank has reported a 20.65% decline in its net profit to Rs.124.57 crore for the third quarter ended on December 31,2009, compared to Rs.156.99 crore in the corresponding quarter last year, due to low earnings from treasury and provision of Rs.113.17 crore for NPAs.


However, the bank has recorded a growth of 45.21% in Net Interest Income on account of 80 basis points reduction in cost of deposits. Net Interest Margin also rose up to 2.80% from 2.38% in the third quarter.


Net NPA for the quarter was 1.3 per cent compared to 0.73 per cent last year. NPA provision coverage ratio was at 65 per cent and bank was looking to take it to the mandated 70 per cent by March 2010. Capital adequacy ratio for the quarter was 13.34 per cent (Basel- II).



Aggregate business of the bank stood at Rs 98,272 crore where there was a growth of 11 per cent in deposits at Rs 58,928 crore and 8 per cent growth in advances at Rs 39,343 crore. Loans to the MSE sector posted a 13 per cent growth to reach Rs 4,493 crore. Educational loan portfolio of the bank grew 27 per cent YOY to reach Rs 520 crore.


In the STCL account, declared as an NPA, the bank made a provision to the extent of Rs 130.42 crore as on September 30,2009 and the balance had to be provided for in the ensuing two quarters. However, the bank has made the full provision of Rs 113.17 during Q3 itself.


Source: http://www.business-standard.com/india/news/vijaya-bank-net-down-2065-margins-rise/383671/