Bangalore-based PSU lender Vijaya Bank, hit by high cost of legacy deposits has reported a marginal 2% increase in its net profit to close to Rs 127 crore for the third quarter of FY13 as compared to corresponding period. The total income of the bank for the period went up by around 8.4% to Rs 2357 crore.
The operating profit declined by around 13% to Rs 260.85 crores. The net interest margin at 2.08% has been strained as there has been an additional slippage of around Rs 300 crore even as there was a marginal increase in the capital to risk weighted assets ratio at 11.78%. Interest income on advances of the Bank increased by 7.5% and income on investments by 13%. For the October-December period the Net Interest Income (NII) of the bank was Rs 455.8 crores.
Gross NPA has come down from 3.17% to 2.91 percent and the net NPA has come down from Rs 1,116 crore in September to Rs 1,098 crore in December 2012. In percentage terms net NPA has come down from 1.9 percent to 1.7 percent. For the quarter ended December 31, 2012 the Capital Adequacy Ratio stood at 11.78% as against 12.39% during the same period last year.
H S Upendra Kamath, CMD, Vijaya Bank said that over the next two quarters there will be a visible difference as they go further on shedding high cost deposits, while parallely work on improving CASA, improving yeild on advances and maintaining the credit deposits ratio above 72.
Vijaya Bank stock lose 3% on NSE to close at Rs 58.25 a share on Thursday.