Vijaya Bank net up 21 per cent

Vijaya Bank net up 21 per cent

Driven by a 48 per cent growth in net interest income, operating profit for first quarter improved by 49 per cent to Rs 314 crore as compared to Rs 209.77 crore in the corresponding quarter of previous year. Net interest margin improved by 57 bps from 2.33 per cent to 2.9 per cent. Total income of the Bank rose to Rs 1520.26 crore from Rs 1463.42 crore last year, a growth of 4 per cent.

The spurt in profit can be attributed to reduction in interest expenditure on deposits by 5.73 per cent, therefore helping cost of deposits to come down by 128 bps from 6.82 per cent to 5.54 per cent. Interest expenditure thus dipped from Rs 960 crore last year to Rs 905 crore in the quarter under review.

Improved yield on advances was another factor for better profits.

Briefing reporters, Chairman & Managing Director Albert Tauro said “Our core earnings continue to show improvement notwithstanding a somewhat slackened pace of business in the first quarter.”

The bank’s gross NPA came down from 2.94 per cent to 2.32 per cent while net NPA was down from 1.58 per cent to 1.35 per cent.

The bank ended the quarter with business of Rs 1,04,621 crore, a growth of 13.96 per cent, comprising deposits of Rs 62,673 crore and advances of Rs 41,948 crore. Tauro said the bank aims to achieve a business of Rs 1,26,000 crore by March 2011, a 21 per cent year-on-year growth.

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