 "ING Vysya Bank net falls 12.9% to Rs 146 crore in Q3")
Total income grew 10 per cent to Rs 697 crore, compared to Rs 631 crore in the year-ago quarter. The operating profit for the quarter marginally grew two per cent to Rs 280 crore against Rs 274 crore a year earlier.
The decline in net profit was mainly on account of higher provisions during the quarter. The bank made a provision of Rs 61 crore, an increase of nearly three times over the corresponding quarter last financial year.
The bank incurred an additional expense of Rs 18 crore towards the retiral benefits of employees under the Indian Banks’ Association cadre, said Jayant Mehrotra, chief financial officer.
Net interest income for the quarter rose 18 per cent to Rs 492 crore from Rs 416 crore in the year-ago quarter. The net interest margin was 3.37 per cent compared to 3.35 per cent.
Other income decreased four per cent to Rs 205 crore from Rs 215 crore.
Other income in the year-ago quarter included a one-off income of Rs 22 crore from the sale of a strategic investment.“Operating costs were impacted by higher accruals for pension benefit due to sharp decline in interest rates. Cost income ratio is at 59.8 per cent, compared to 56.5 per cent in the corresponding quarter of the previous year,” said Mehrotra.Gross non-performing asset (NPA) ratio and net NPA ratios stood at 1.8 per cent and 0.6 per cent, respectively, as of December 2014 from 1.7 per cent and 0.2 per cent, respectively, in December 2013. Provision coverage ratio as of December 2014 was 65 per cent.
The capital adequacy ratio in the quarter under review dropped to 14 per cent from 17 per cent in the year-ago quarter. The return on assets also came down to 0.90 per cent from 1.22 per cent.
“Following shareholders’ approval at the extraordinary general meeting for the merger with Kotak Mahindra Bank, the bank is hopeful of securing all regulatory approvals including from Reserve Bank of India and the Competition Commission of India within the next 2-3 months. We hope to complete the merger process by April 1, 2015,” said Uday Sareen, deputy CEO and CEO-designate.
The Bank's shares ended 0.09% higher at Rs 978.20 per share on the close of trading on BSE.