Source: Business Standard:
Bengaluru-based public sector lender Vijaya Bank today announced 3.3 times growth in net profit at Rs 37.40 crore for the third quarter ended December 2014 compared to Rs 11.39 crore in the corresponding quarter last year.
The total income went up 14.9% to Rs 3,302.67 crore compared to Rs 2,874 crore a year ago. The operating profit was up 109% to Rs 350.53 crore.
"The rise in profits was aided by a 12.14% rise in net interest income at Rs 555 crore, its highest in any quarter, and treasury profit of Rs 158 crore", Kishore Sansi, Managing director and CEO said.
The net interest margin improved by two basis points to 1.90% compared to 1.88% a year ago. The Bank has managed to shed Rs 4,800 crore worth of high cost deposits during the third quarter. Another Rs 8,000 crore high cost deposits will be either reprised or shed during the fourth quarter, Sansi said.
The Bank"s net non-performing assets increased to 1.89% from 1.57% a year ago. During the quarter, the bank witnessed fresh slippages of Rs 744 crore. After writing off Rs 308 crore and a recovery, its net NPAs stood at Rs 72 crore, he said.
The provision coverage ratio stood at 65.77%. The percentage of CASA deposits improved to 19.08% from 17.84%.
Its return on assets improved to 0.11% from 0.04% a year ago. The capital adequacy ratio under Basel-III dipped to 10.57% from 10.78% a year ago. The Tier-I ratio stood at 7.82% and Tier-II at 2.75%. The Bank is planning to raise Rs 500 crore through Tier-I bonds and another Rs 500 crore from Tier-II bonds during the fourth quarter, Sansi added.
The Bank`s shares closed 1.84% higher at Rs 49.70 per share on BSE....