Vijaya Bank Q2 net profit declines 24% at Rs 140 cr

Uma Kannan, Bengaluru,

Oct 29 2018, 14:44 ist
updated: Oct 29 2018, 20:10 ist

Public sector lender Vijaya Bank on Monday posted 24.54% decline in net profit at Rs 139.94 crore in the second quarter ended September 30, 2018, compared with Rs 185.46 crore in the same quarter last year due to provisioning.

"Our operating profit has been consistent, and it is up by 3.39% at Rs 759 crore compared to Rs 734 crore in the corresponding quarter. Our provision coverage ratio has improved to 62.65% from 59.29%. Having 65 to 70% provisioning is healthy for any private or public sector," R A Sankara Narayanan, MD and CEO of Vijaya Bank said.

The public sector lender's total income rose to Rs 3,931.36 crore compared with Rs 3,501.31 crore. Its net interest income for the second quarter was up 15.58% at Rs 1,166 crore compared to Rs 1,008 crore in the corresponding quarter.

Narayanan said the bank's gross NPAs were down from 7.06% to 5.86% and net NPAs were down from 4.86% to 3.81%. The amount of Net NPAs stood at Rs 4,810 crore in the second quarter ended September 30, 2018, compared with Rs 4,473 crore in the corresponding quarter last year.

"Our housing loan portfolio, which is the strength of Vijaya Bank, was up by 31.13% in the second quarter," he said.

While gross advances were up by 36.98% at Rs 1,29,040 crore, gross deposits stood at Rs 1,67,628 crore in the second quarter. The bank's total business was up by 30.23% at Rs 2,96,668 crore.

Narayanan said going forward, both gross and net NPAs will come down and results will be much better in the coming quarters.

Shares of the bank on Monday closed at Rs 43.45, up 7.02% from the previous close.