Vijaya Bank net jumps to Rs 127 cr

Bangalore-based public sector Vijaya Bank today reported a 36.82 per cent rise in net profit to Rs 126.88 crore during the third quarter ended December 31, 2007, on a y-o-y basis.

The additional profit of Rs 34.1 crore was partially enabled by a writeback of Rs 22.5 crore on account of provisions and contingencies.

Treasury operations yielded an additional Rs 41 crore, compared to the same period last year. The net impact of operations, operating profits, rose marginally by 4 per cent to Rs 158 crore. Total income for the period went up by 45.14 per cent to Rs 1,139.19 crore mainly due to higher other income.

Net interest income declined by 17.31 per cent to Rs 219.09 crore compared with the year-ago period. The bank's net interest margin dipped to 2.64 per cent during the third quarter this year compared to 3.21 per cent in the same period last year because of high cost of funds. 
 

Performance in quarter ended December
In Rs crore	2006	2007	%chg
Interest earned	731.87	1022.51	39.71
Other income	72.96	116.68	59.92
Expenditure	632.60	980.56	55.00
PBT	172.23	158.63	-7.90
Net profit	92.73	126.88	36.83
CAR (%)	11.31	12.21	-

The bank's cost of deposits have gone up to 7.03 per cent compared to 5.64 per cent in the corresponding quarter last year. As the provisioning for nine months of the present year has gone down by Rs 126 crore, the net NPA level has gone up from Rs 100 crore to Rs 149 crore. The net NPA percentage has gone up from 0.49 to 0.54. However, it has made a higher provision of Rs 54.25 crore towards taxes.

Prakash P Mallya, chairman and managing director, Vijaya Bank, said, "The third quarter kept the tempo of good growth going for us, which we started one and a half years ago. Our interest on advances have shown a healthy growth."

Starting from December 2006 till March 2007, the bank had raised bulk deposits of Rs 8,000 crore at a preferential rate of interest ranging from 9-11 per cent. Of this, the bank has retired Rs 2,000 crore and will get rid of the remaining amount by March 2008.