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VIJAYA BANK Q1 NET PROFIT UP 21%
Performance highlights FOR THE QUARTER ENDED 30.06.2010
HIGHLIGHTS
- Operating profit improved from Rs.209.77 Crore to Rs.314.26 Crore, up 49.81%
- Net Profit improved from Rs.143.88 Crore to Rs.173.49 Crore, up 21%
- Net Interest Income growth at 47.88%.
- Net Interest Margin (NIM) at 2.90%, vs. 2.33% a year ago up by 57 bps
- Total business at Rs.1,04,621 Crore, comprising Rs.62,673 Crore under deposits and Rs.41,948 Crore under advances.
- Capital Adequacy (Basel II) at 14.74%.
- Gross NPA down from 2.94% to 2.32%
- Net NPA down from 1.58% to 1.35%
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 Vijaya Bank posted a Net Profit of Rs.173.49 Crore for the first quarter of 2010-11, compared to Rs.143.38 Crore for corresponding quarter last year. "Our core earnings continue to show improvement notwithstanding a somewhat slackened pace of business in the first quarter", Shri Albert Tauro, C&MD of Vijaya Bank informed the media at a Press Conference at Bangalore.
Driven by 48% growth in Net Interest Income, operating profit for the first quarter improved by 49.81% to Rs.314.26 Crore compared to Rs.209.77 Crore for the corresponding quarter of last year. Net Profit of Rs.173.49 Crore is arrived at after reckoning provision for non performing advances to the tune of Rs.58.05 Crore and a tax provision of Rs.80 Crore showing an improvement of 21% Y-o-Y. Net Interest Margin improved by 57 bps to 2.90% Q-o-Q while Return on Assets improved to 0.96%.
Interest expenses on deposits show a reduction by 5.73% helping cost of deposits to come down by 128 bps from 6.82% to 5.54%. Operating expenses grew by 2.50% only during the quarter which also contributed to good growth in overall earnings.
Capital to Risk Weighted Assets ratio (CRAR) stood at 14.74% (Basel-II) with Tier I ratio at 10.12% and Tier II ratio at 4.62%. During the quarter, the Bank received the second tranche of capital to the tune of Rs.700 Crore from the Government of India by way of subscription to Perpetual Non-cumulative Preference Shares.
BUSINESS & SUPPORT SERVICES
Bank ended the quarter with a business of Rs.1,04,621 Crore as at June 30, 2010, representing a Y-o-Y growth of 13.96%, comprising deposits of Rs.62,673 Crore and advances of Rs.41,948 Crore. Within overall advances, priority sector advances recorded a 5.05% growth (Y-o-Y) to reach Rs.13948 Crore, accounting for 33.26% of Adjusted Net Bank Credit. While agricultural advances posted 19.13% growth to reach Rs.5,013 Crore, MSME advances improved to Rs.5,253 Crore, signifying a y-o-y growth of 15.85%. Advances to weaker sections constituted 8.15% of Adjusted Net Bank Credit, while loans to women customers saw a 14.78% growth, accounting for 5.72% of Adjusted Net Bank Credit as against the 5% norm. Under education loan, the portfolio of Rs.546 crore reflected a Y-o-Y growth of 22.70%.
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