Vijaya Bank net drops to Rs 380.5 crore

BS 200 SCORECARD

Vijaya Bank has posted a net profit of Rs 155.92 crore for the three months to March 2005, up 25.35 per cent from Rs 124 crore in the corresponding quarter of the previous year. Total income was up 4.77 per cent to Rs 632.92 crore (Rs 604 crore).

Earning per share for the quarter was also up by a fourth to Rs 3.60. For the full year to March 2005, net profit was Rs 380.57 crore, down 7.47 per cent from Rs 411.3 crore. "This is the result of the erratic and unexpected developments in the bond markets," chairman and managing director M S Kapur said.

At the end of the year, the bank's net non performing assets ratio reduced from 0.91 per cent to 0.59 per cent. Gross NPA came down from 3.44 per cent to 2.94 per cent.

The capital adequacy ratio at the end of the quarter was 12.92 per cent compared with 14.11 per cent at the end of March 2004. Net interest margin at the end of the year was 3.56 per cent down from 3.69 per cent for the previous year and return on assets was 1.43 per cent down from 1.91 per cent.

Cost of deposits of the bank declined from 5.74 per cent to 4.84 per cent but yield on advances also dropped, from 10.41 per cent to 9.34 per cent.

A Rs 514 crore impact left treasury profits for the full year down 56.67 per cent at Rs 148.90 crore. The impact came from "diminution of investments" to the tune of Rs 319 crore and a "drop in profits" of Rs 195 crore from sale of investments.

During the year, the bank also shifted securities from available for sale category to held to maturity category, leading to a depreciation of Rs 128 crore. Staff costs continued to eat into profits, with some Rs 74 crore set apart for impending wage hikes.

Total business increased 24.58 per cent to Rs 40,301 crore. This comprised deposits of Rs 25,618 crore, which grew 21.90 per cent, and advances of Rs 14,683 crore, which grew 29.53 per cent.