Vijaya Bank Q1 net zooms 163.53%

Bangalore-based Vijaya Bank has posted 163.53% increase in its net profit to Rs 72.63 crore for the quarter ended June 30, i.e. Q1FY07 when compared with Rs 27.56 crore in Q1FY 06. 

Total income of the bank has also gone up by 6.42% to Rs 700.06 crore as against Rs 657.78 crore in the corresponding quarter last year.

For the first quarter of FY07, bank's operating profit was down by 3.56% at Rs 195.11 crore as against Rs 202.32 crore. "The reduction in gross operating profit is mainly on account of drop in profit on sale of investments to the tune of Rs 36.91 crore due to hardening of yields level and consequently restricted treasury activity," Prakash P Mallya, CMD of Vijaya Bank, said.

Operating profit from core business (excluding treasury profit) was at Rs 172.69 crore in Q1FY07 as against Rs 142.99 crore recorded in Q1FY06, there by recording a growth of 20.77% on year-on-year basis, he added.

Bank's net interest income (NII) has grown 8.65% to Rs 258.33 crore from Rs 237.77 crore on year-on-year basis. While net interest margin (NIM) is 3.34% which is reasonably good in the industry and has gone up from 3.20% as on March 31, 2006, Mallya said. 

Percentage of gross non-performing assets (NPAs) of the bank stood at Rs 530.03 crore. Gross NPA ratio is 2.96% for Q1FY07 as against 2.94 in Q1FY06. Percentage of net non-performing assets (NPAs) of the bank improved to 0.85% (Rs 148.56 crore) as against 0.97% (Rs 133.66 crore). Capital adequacy ratio (CAR) stood at 11.55% for the first-quarter as against 14.12% in Q1FY06. The bank's total business touched Rs 46,800 crore in Q1FY07 as against Rs 39,029 crore for the corresponding previous year, thereby recording a growth of 19.91% (year-on-year basis). Bank's business as on March 31, 2006 stood at Rs 44,771 crore). 

Mallya, giving guidance for FY07, said: "the bank has set a target to achieve 'Platinum Jubilee Business Target' of Rs 50,000 crore by September 30, 2006. The target for the full year is set at Rs 60,000 crore, comprising Rs 36,000 crore deposits and 24,000 crore advances. We want to increase the number of branches from 923 to 1,000 during the year with emphasis on potential urban/metro centres."