Vijaya Bank's Q1 net stands at Rs 143 crore


Driven by 53.75 per cent growth in net interest income, operating profit for the first quarter rose to Rs 209.77 crore, compared to Rs 154.84 crore in the corresponding period last year.
"Our Q1 core earnings have been very impressive, especially in the light of somewhat slackened business growth. Our net interest income continued to feature progressive improvement

sequentially as well as on a Q-o-Q basis, leading to a robust growth in operating profit," Bank's Chairman and Managing Director Albert Tauro told reporters here.
Net profit of Rs 143.38 crore was arrived at after reckoning for provision for wage arrears of Rs 65 crore, superannuation benefits of Rs 44.38 crore, provision for taxes of Rs 102.75 crore and non-performing advances to the tune of Rs 104.60 crore, he said.
There was write back of provision under investments of Rs 158.98 crore, mainly due to efficient management of investment portfolio, he noted, adding that return on assets for the quarter worked out to be 0.93 per cent.

Tauro said the bank had a business of Rs 91,802 crore as on June 30, 2009, comprising deposits of Rs 54,895 crore and advances of Rs 36,907 crore.
The first quarter also featured continuation of loan restructuring for stressed accounts in line with the RBI stipulations, he said.
"Yes there was some pressure on quality of assets," he said, pointing to the rise in NPA to 2.94 per cent from 1.71 per cent during the first quarter.
Personal loans, commercial loans and real estate loans contributed to the rise in NPA, he said and added that efforts would be made to bring it down in the coming quarter.
The bank aims to reach a business level of Rs 1,10,000 crore, with Y-o-Y growth of about 22 per cent by March 2010, Tauro said, commenting on the guidance for the year.

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