JOIN US Vijaya Bank on Tuesday declared 39.3 per cent decline in net profit at Rs 135.84 crore for the fourth quarter ending March 30, 2014 compared to Rs 224.15 crore in the same period in the last fiscal.
Speaking to reporters, Vijaya Bank Chairman and Managing Director V Kannan said the decline in the net profit was due to increase mark-to-market (MTM) provisioning and hit in treasury profits in terms of reduction in trading profit.
“Vijaya Bank’s provisioning for non-performing assets (NPA) was Rs 98.53 crore during the fourth quarter of 2013-14 as against Rs 149.08 crore during the corresponding period last year. When it comes to standard assets and restructuring provision, the bank has provided Rs 95.68 crore against Rs 41.81 crore in the same period last year,” he said.
“For the entire year, MTM provisioning has been Rs 120 crore. In the fourth quarter, MTM decline has been very severe, so provisioning was Rs 70.81 crore compared to Rs 25 crore in the fourth quarter of 2012-13. That is why the impact on fourth quarter figure is high,” Kannan said.
Total income in the fourth quarter of the fiscal 2014 increased 13 per cent to Rs 3,029 crore from Rs 2,680 crore a year ago. Operating profit for the quarter also declined 14 per cent to Rs 333 crore compared to Rs 388 crore in the same period last year.While net interest income (NII) marginally rose to Rs 526 crore from Rs 517 crore year-on-year, rising 1.7 per cent, net interest margin (NIM) dipped to 1.92 per cent from 2.21 per cent a year ago. Cost of deposits moved up marginally to 8.05 per cent from 7.96 per cent, while yield on advances dipped to 11.10 per cent from 11.35 per cent year-on-year.
On the asset quality front, gross NPAs as a percentage of total advances rose to 2.41 per cent from 2.17 per cent in the same quarter a year ago. Its net NPAs also increased to 1.55 per cent from 1.30 per cent at the end of March 2013. Capital adequacy ratio under Basel-III stood at 10.56 per cent with core Tier-I equity of 8.13 per cent and 2.43 per cent of Tier-II. Total business in the fiscal ended March 2014 grew 23.39 per cent to Rs 2,06,721 crore against Rs 1,67,531 crore in March 2013.
“Advances increased by 16.89 per cent to Rs 82,425 crore as against Rs 70,514 crore in the previous year. We are aiming at credit and deposit growth of 19 per cent for the year 2014-15,” Kannan said.