Vijaya Bank net up 22%

Vijaya Bank net up 22%

Vijaya Bank CMD Albert Tauro (left) and Executive Director Subhalakshmi Panse in Bangalore.

The total income rose by 9.46 per cent to Rs 1,584.40 crore during Q3 from Rs 1,447.40 crore.

Briefing reporters, Chairman and Managing Director Albert Tauro, said the robust result was due to the bank’s core earnings showing marked improvement. While net interest income notched up impressive 26.49 per cent growth at Rs 536 crore as against Rs 394 crore in previous period quarter, net interest margin saw healthy improvement to 3.44 per cent from 2.56 per cent.

He pointed out that net profit for the quarter has been arrived at after making provisions of Rs 95 crore for second pension option, Rs 98.03 crore for non-performing assets and tax of Rs 60 crore. However, the bank’s operating expenses, shot up to Rs 311.11 crore during the quarter under review as against Rs 258.80 crore in the previous fiscal same period quarter. This was due to second pension option and capital raised for gratuity, Tauro said.

While the bank saw year-on-year growth of 8.10 per cent in deposits at Rs 63,702 crore, it clocked 10.74 per cent year-on-year growth in its credit at Rs 43,570 crore.

The bank’s total business during the quarter stood at Rs 1,07,272 crore, Tauro noted, pointing out that bank’s credit:deposit ratio increased from 66.77 per cent to 68.40 per cent during the quarter. The bank’s cost of deposit was lower at 5.77 per cent during Q3 against 5.94 per cent. 

Encouraged by good show, Tauro said the bank seeks to record 20 per cent growth to achieve business of Rs 1,20,000 crore by March 31, 2011, register overall minimum of 35 per cent growth in net interest income and maintain net interest margin at around 3.25 pc.