Bangalore-based foreign lender, ING Vysya Bank, reported a 53.3 per cent rise in net profit at Rs 115.4 crore for the quarter ended September, primarily owing to robust interest income.
The net profit in the July-September quarter 2010 stood at Rs 75.3 crore.
The bank’s total income in the quarter rose 4.2 per cent to Rs 466.1 crore, while the net interest income rose 19.4 per cent to Rs 303.6 crore, compared with Rs 254.2 crore in the same period the previous financial year.
The bank’s net interest margin (NIM) expanded sequentially from 3.02 per cent in the first quarter to 3.35 per cent in the second quarter, due to repricing in the advances portfolio and capital infusion at the end of the first quarter. "We should be able to maintain the margin at the current level for the current financial year," said chief financial officer, J Mehrotra.
The operating costs for the quarter increased to Rs 276.7 crore from Rs 263.3 crore in the year-ago period.
The quality of the assets portfolio continued to be healthy and provisions and contingencies were down at Rs. 17.5 crore, against Rs. 69.8 crore in the year-ago period.
Total deposits rose to Rs 30,712 crore in September, up from Rs 26,069 crore a year ago. Current account and savings account (Casa) deposits stood at Rs 9,997 crore (32.6 per cent of total deposits) from Rs 9,354 crore (34.8 per cent) a year ago.
"Improving Casa becomes a challenge in the current rate environment. But as the interest cycle changes, we could see inflow into casa deposits," he said.
Gross advances rose 22 per cent to Rs 25,289 crore from Rs 20,670 crore in the corresponding period of the previous financial year. The credit-deposit ratio stood at 80.9 per cent, against 77.6 per cent in the year-ago period.
The bank’s gross non-performing assets (NPAs) declined to 2.02 per cent, compared with 2.91 per cent in the year-ago period. The provision cover for NPAs improved from 72.8 per cent to 84.8 per cent. Capital adequacy ratio(Basel II) stood at 15.00 per cent, up from 13.50 per cent in the year-ago period.
