Vijaya Bank has recorded a 34 per cent increase in net profit to Rs 70.73 crore during 2000-01, compared with the previous year while its income was Rs 1,512.45 crore compared with Rs 1,314.34 crore during 1999-2000.
The bank's total deposits grew to Rs 12,632 crore during the same period from Rs 11,593 crore during the previous year.
The net profit would have nearly doubled but for the absorption of around Rs 60.08 crore set aside for the VRS, Vijaya bank chairman and managing director S Gopalakrishnan told newspersons.
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The bank raised around Rs 100 crore from a public issue in November 2000. The government holding in the bank stands at 72.16 per cent after the IPO.
Gopalakrishnan said operating profit increased by Rs 87.46 crore to Rs 247.23 crore during 2000-01. But it expects a modest increase of around Rs 53 crore to Rs 300 crore during the current fiscal.
Its net profit as percentage of working funds improved to 0.50 per cent from 0.41 per cent while its operating profit as percentage of working funds rose to 1.73 per cent from 1.25 per cent.
The percentage of gross NPAs to gross advances declined to 10 per cent from 11.5 per cent while percentage of net NPAs to net advances declined to 6.23 per cent from 6.65 per cent.
He said the capital adequacy ratio improved to 11.50 per cent from 10.61 per cent. Despite the pressure on interest margins, the net interest income recorded an increase of 18.6 per cent and the non-interest income increased to Rs 156.26 crore from Rs 116.81 crore, recording an increase of 33.8 per cent.
The net income which includes net interest income and non-interest income recorded a higher growth of 22.1 per cent compared with 18.4 per cent.
Gopalakrishnan said the average aggregate deposits recorded an increase of 13.7 per cent. The share of average savings bank deposits improved to 21.51 per cent from 21.06 per cent while the cost of deposits declined to 7.61 per cent from 7.81 per cent.
He said the bank hopes to increase the total business to Rs 22,000 and plans to computerise 75 more branches.