Vijaya Bank Q4 net dives 29% to Rs 97 cr

Cites higher provisioning as reason

Vijaya Bank Q4 net dives 29% to Rs 97 cr

Public sector lender Vijaya Bank on Tuesday reported 28.73 per cent decline in net profit at Rs 96.80 crore for the fourth quarter ended March 31, 2015, on account of restructured advances.

The bank had reported a net profit of Rs 135.84 crore in the corresponding quarter last year. However, for the full year, net profit of the bank jumped by 5.65 per cent to Rs 439.41 crore from Rs 415.91 crore in the previous fiscal.

Briefing reporters, Vijaya Bank Managing Director and CEO Kishore Kumar Sansi attributed the bank’s decline in net profits to higher provisioning to the tune of Rs 306 crore, against Rs 276 crore last year. The bank also made a provision of Rs 208 crore towards increase in salaries arising out of the 10th bipartite settlement with IBA.

The bank’s total income went up 12.43 per cent to Rs 3,406.12 crore compared with Rs 3,029.34 crore a year ago. The operating profit (before provisions and contingencies) declined by 6.12 per cent to Rs 312.35 crore compared with Rs 332.73 crore.

Net Interest Income (NII), or the difference between the interest earned on loans and the interest paid on deposits, stood at Rs 623 crore in the fiscal fourth quarter, up 18.36 per cent from Rs 526.37 crore.

Gross NPAs during the quarter increased to 2.78 per cent from 2.41 per cent a year ago and the net NPAs was 1.92 per cent from 1.55 per cent a year ago. During the March quarter, return on assets dipped to 0.28 per cent from 0.42 per cent a year ago. The capital adequacy ratio under Basel-III during the quarter stood at 11.43 per cent from 10.56 per cent.

Meanwhile, the company’s board at its meeting held on Tuesday recommended a final dividend of Rs 1.50 per share for the financial year 2014-15 subject to the approval of shareholders.

The bank’s stock closed at 2.22 per cent higher at Rs 46 per share on the BSE.

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