Vijaya Bank net profit up 1.6%

Vijaya Bank net profit up 1.6%

R A Sankara Narayanan, MD and CEO of Vijaya Bank. DH Photo

Public sector lender Vijaya Bank on Monday reported a marginal 1.6% increase in net profit at Rs 207.31 crore in the fourth quarter of 2017-18 compared with Rs 203.99 crore in the same quarter a year ago.

The bank's total income during the quarter grew to Rs 3,728.22 crore as against Rs 3,504.73 crore in the year-ago period.

However, for Fiscal 2017-18, the bank's net profit came down by 3.12% at Rs 727.02 crore compared with Rs 750.48 crore in the previous fiscal. During the fiscal, the bank's income was up at Rs 14,190.45 crore from Rs 14,030.72 crore in 2016-17.

R A Sankara Narayanan, MD and CEO of Vijaya Bank said, the bank has not availed the dispensations for reduction in NCLT (National Company Law Tribunal) provisions, staff gratuity provisions and mark to market provisions. "If we had availed the dispensations our net profit would have been higher. We would have added Rs 400 crore more," he said.

The bank said that its provisioning for non-performing assets for the quarter stood at Rs 552.91 crore as against Rs 344.56 crore in March quarter of 2016-17.

Vijaya Bank's total business grew by 20.07%, and it expects the same growth in this fiscal.

"Gross NPAs were down from 6.59% to 6.34% and this will further come down in this fiscal year. Net NPAs were down from 4.36% to 4.32%," Narayanan said.

The public sector lender said that its housing loans portfolio was up by 30.50% and its retail credit by 24.98%.

The bank's provision coverage ratio increased to 59.39%. The bank has 2,200 branches and of which close to 1,300 branches are in the rural and semi-urban areas. 

The bank informed the exchange that the Board has recommended dividend of Rs 1.20 per share at 12% for 2017-18.

Shares of Vijaya Bank closed at Rs 61 on the BSE, up 1.75% on Monday.