ING Vysya Bank has reported a 30 per cent rise in profit at Rs 150.2 crore for the second quarter against Rs 115.4 crore in the same period last year.
This was the 12th consecutive quarter when the lender recorded growth in profit after tax.
Returns on assets improved to 1.26 per cent, compared with 1.12 per cent in the year-ago period. While net interest income rose 21.5 per cent to Rs 368.8 crore, against Rs 303.6 crore in the corresponding quarter of the previous year, the net interest margin stood at 3.45 per cent, compared with 3.35 per cent in the year-ago period. Other income rose four per cent to Rs 168.9 crore, while total income increased 15.4 per cent to Rs 537.7 crore.
The bank’s operating costs rose 12.1 per cent to Rs 310 crore in the quarter. Operating profit increased 20.2 per cent to Rs 227.6 crore, while the bank’s cost-to-income ratio improved to 57.7 per cent, against 59.4 per cent in the corresponding period last year.
The ING Vysya Bank management said there was a one-off reduction of Rs 21.9 crore (according to its interpretation of a central bank circular) in other income on a mark-to-market receivable in a derivatives contract “where we (the bank) have unwound the outstanding receivable and converted the entire amount into a term loan at the client’s request.”
Adjusting for this, other income rose 17.4 per cent, with strong growth across core products, while total income rose 20.1 per cent, operating profit 31.7 per cent and the cost-to-income ratio 55.4 per cent.
Provisions fell to Rs 6.4 crore from Rs 17.5 crore in the corresponding quarter of the previous year. The bank’s asset quality continued to be robust, with non-performing asset (NPA) ratio and net NPA ratio at 1.90 per cent and 0.13 per cent, respectively.
Managing Director Shailendra Bhandari said, “I am pleased to note we saw good momentum in all our businesses. Our gross advances grew 21 per cent, notwithstanding the repayment in one large account. There was significant improvement in the net interest margin at 3.45 per cent and ROA (return on assets) at 1.26 per cent.”
