STRONG GROWTH IN INTEREST INCOME BOOSTS VIJAYA BANK PROFIT 22%

Backed by over 36 per cent growth in net interest income, Vijaya Bank's net profit for the third quarter of this fiscal grew 22 per cent to Rs 151.80 crore, compared with Rs 124.57 crore recorded during the corresponding quarter of last year. Its net interest income stood at Rs 536.32 crore (Rs 392.92 crore).

The net interest margin (NIM) has grown in a “consistent and continuous manner, as the bank's NIM was of 3.44 per cent. The bank has seen a reduction in cost of deposits to 5.77 per cent (5.94 per cent), though yield on advances has also come down to 10.32 per cent (10.36 per cent).

The bank's credit growth is at 11 per cent year-on-year. However, the bank was hopeful that by the fiscal-end, the bank would be able to clock a 18-20 per cent growth in credit.

Bad loans

On the non-performing assets (NPA) front, its gross NPAs stood at 2.46 per cent (2.53 per cent), while net NPAs stood at 1.38 per cent (1.3 per cent). The bank hopes to contain gross NPAs to below two per cent and net NPAs below one per cent.

The bank's provision coverage ratio is 67.60 per cent, and it was hopeful of reaching the 70 per cent target by end-March. The bank has provided Rs 95 crore for second pension option, Rs 98 crore for NPAs, and Rs 60 crore for taxes.

SOURCE: http://www.thehindubusinessline.com/todays-paper/tp-money-banking/article1122220.ece