Vijaya Bank reports Rs 161.46 cr Q1 net profit

State-owned Vijaya Bank today reported a 21.89 per cent jump in net profit at Rs 161.46 crore in the first quarter of the current financial year that ended on June 30.
The bank had reported a net profit of Rs 132.46 crore during the corresponding period last year.
The total income of the city-headquartered bank rose by 18.19 per cent to Rs 3,189.95 crore during the quarter under review, against Rs 2,698.82 crore in the same period last year.
"....Rs 198 crore was the provision made in Q1 of last year. This year, we have made provision of Rs 205 crore.This shows there is an increase, but within that because of the interest rate movement the treasury provision write-back has been to the extent of Rs 76 crore," Vijaya Bank Chairman & Managing Director V Kannan told reporters here.

He said "Actual provision is Rs 205 crore, but there is a write-back of Rs 76 crore, that is why the net impact of provisions has been Rs 129 crore, and that is one of the significant contributors for the increase in net profit."
Bank's Gross NPA ratio as on June 30, 2014 is 2.68 per cent compared to 2.42 per cent during the corresponding period last year. The net NPA ratio is 1.77 per cent as on June 30, 2014 compared to 1.45 per cent in the same period last year.

The provision coverage ratio of the bank is at 63.75 per cent as on June 30, 2014, compared to 67.28 per cent last year, the bank said.

Interest income on advances for three months period ended June 30, 2014 increased to Rs 2,096.95 crore against Rs 1,805.49 crore for the corresponding period of last year, up by 16.14 per cent, the bank said.
Income on investments for the quarter registered an Y-o-Y growth of 39.46 per cent ie., increased to Rs 804.39 crore from Rs 576.79 crore for the period ended June 30, 2013.
Net interest income increased to Rs 535.48 crore from Rs 480.83 crore ie, by 11.37 per cent, it added.
Kannan said total business for the quarter registered a growth of 12.94 per cent to reach Rs 1,95,768 crore from Rs 1,73,333 crore as of June 30, 2013.

He said while deposits increased from Rs 1,05,368 crore as on 30th June, 2013 to Rs 1,18,677 crore as on 30th June, 2014, up by 12.63 per cent; the advances increased to Rs 77,091 crore as on June 30, 2014 from Rs 67,964 crore as on June 30, 2013, up by 13.43 per cent.
Pointing out that the Bank was in the process of raising equity capital to the tune of Rs 600 crore through 'Qualified Institutional Placement' route for augmenting the Tier I capital, Kannan said "we have sought permission from the Government and the Reserve Bank of India for this."

The bank said its total number of branches increased to 1,516 and total number of ATMs to 1,536 as of June 30, 2014.
Noting that the total staff strength as on June 30 stood at 13,699, it said during the June'14 quarter, the bank recruited 1,139 employees in all cadres.