According to Mr. Albert Tauro, Chairman and Managing Director, Vijaya Bank's net profit for the quarter ended September 30, 2010, grew 33 per cent to Rs 144.3 crore, from Rs 108.42 crore recorded during the corresponding period last year. This was achieved on the back of a 33 per cent growth in net interest income at Rs 487.22 crore (Rs 364.78 crore).
The bank's net interest margin (NIM) grew significantly to 3.16 per cent (2.39 per cent).
The cost of deposits fell to 5.64 per cent (6.52 per cent) during the quarter, which was significant compared to the drop in yield on advances which stood at 10.2 per cent (10.56 per cent).
Deposits
The bank's aggregate deposits grew at 7.8 per cent. Gross credit for the bank grew 5.41 per cent during the quarter.
The bank's trading profits also fell 25 per cent to Rs 24 crore (Rs 32 crore).
The provision coverage ratio stands at 69 per cent, and RBI had permitted the bank to complete the mandatory 70 per cent provision coverage by March 2011. The bank's gross NPAs stood at 2.44 per cent (2.91 per cent), and net NPAs were 1.32 per cent (1.46 per cent).
The bank is adequately capitalised at 14.25 per cent and the Tier-I component stood at 9.64 per cent.
CASA
Going forward, the bank hopes to increase its CASA further from its present ratio of 25 per cent, and hopes to keep its cost of deposits down. During the first half of this fiscal, the bank shed Rs 6,000-crore worth of bulk deposits. Another focus area would be retail advances, which would give the bank a “good spread.” The bank would also focus on NPA recovery, and would align its NPAs through CBS by March 2011, as mandated by the Government of India.
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