Gains from treasury operations on the back of falling yields, write-back of provisions and improved net interest incomes (NII) helped a 28-41 per cent surge in net profits for six public sector banks that declared their third quarter results on Thursday.
Bank of Baroda
Driven by a 114.34 per cent rise in treasury gains, Bank of Baroda reported a 41.37 per cent jump in its net profit to Rs 708.37 crore as against Rs 501.05 crore in the corresponding period last year. During the third quarter, the bank’s profit from treasury operations increased to Rs 553 crore from Rs 258 crore in the year-ago period. The bank’s NII rose 46.55 per cent to Rs 1,461.84 crore as against Rs 997.48 crore for the quarter ended December 2007.
During the quarter under review, the stock of gross non-performing assets (NPAs) on advances came down by 5.83 per cent to Rs 1,921.42 crore from Rs 2,040.30 crore. Similarly, net NPAs dropped to 0.37 per cent from 0.54 per cent reported in the corresponding period a year ago. The bank’s operating profit for the quarter stood at Rs 1414.71 crore, up 51.71 per cent from Rs 932.40 crore a year ago.
Andhra Bank
Helped by NPA recovery and an enhanced credit delivery system, Andhra Bank witnessed a 33.76 per cent growth in its net profit to Rs 212.68 crore for the third quarter as against Rs 159 crore during the corresponding quarter last year. The net NPA stood at Rs 86 crore, representing 0.21 per cent of net advances.
At Rs 68.07 crore, the bank recorded a 84.87 per cent year-on-year jump in gains from sale of investments, which predominantly constitutes government bonds. The NII was higher by 22.09 per cent to Rs 451.87 crore as against Rs 370.13 crore last year.
Dena Bank
Public-sector lender Dena Bank said that its Q3 net profit grew 38.87 per cent to Rs 140.36 crore as against Rs 101.07 crore in the same quarter last financial year. The bank attributed this growth to a rise in NII that increased by 71.19 per cent to Rs 352.45 crore from Rs 205.88 in the corresponding quarter last year.
| BANKING ON INTEREST INCOME Performance for the third quarter ended December 31 | ||||||
| (Rs crore) | NII | Net profit | Net NPA | |||
| 2008 | % chg* | 2008 | % chg* | 2008 | % chg* | |
| Andhra Bank | 451.9 | 22.09 | 212.7 | 33.75 | 86.2 | 72.84 |
| BoB | 1461.8 | 46.55 | 708.4 | 41.38 | 472.6 | -8.63 |
| Dena Bank | 352.5 | 71.19 | 140.4 | 38.87 | 265.6 | -9.60 |
| Dhanalakshmi | 37.4 | 62.21 | 16.9 | 205.61 | 26.1 | 49.26 |
| Karur Vysya | 116.9 | 23.30 | 59.3 | 27.61 | 46.1 | 1250.73 |
| Lakshmi Vilas | 44.7 | 50.32 | 19.1 | 400.00 | 68.3 | 10.55 |
| NII = Net interest income , * Y-o-Y growth | ||||||
The bank’s total income rose to Rs 1,093.54 crore in the December quarter from Rs 804.13 crore a year ago. During the three-month period, the bank’s operating profit surged 59.15 per cent to Rs 265.24 crore from Rs 166.66 crore.
Karur Vysya Bank
Buoyed by a strong growth in fee-based and other incomes, Karur Vysya Bank reported a 28.80 per cent growth in net profit to Rs 59.25 crore for the third quarter as against Rs 46 crore for the same period last year. Total income increased 48 per cent to Rs 506 crore from Rs 340 crore in the year-ago period. The bank recorded a 195 per cent jump in its other income to Rs 131 crore as against Rs 44 crore. Income on investments grew to Rs 66 crore from Rs 64 crore.
