Bangalore, Jan 23 (Inditop.com) State-run Vijaya Bank reported a net profit of Rs.125 crore for the October-December third quarter of fiscal 2009-10, down 26 percent from the Rs.159 crore in same period a year ago.
“Our numbers need to be seen in the light of subdued earnings from treasury during the third quarter in the face of hardened benchmark yields,” Chairman and Managing Director Albert Tauro told reporters here Saturday.
Provision of Rs.113.17 crore against a declared non-performing asset of the state-run State Trading Corporation Ltd (STCL) had a cascading effect on the bank’s bottomline for the quarter.
The fresh provision is in addition to Rs.130.42 crore made against STCL account in the second quarter (July-Sept), as per the central bank guidelines.
The bank’s total income too declined by 13 percent YoY to Rs.1,447 crore during the quarter from Rs.1,635 crore in the same quarter a year ago.
A steep fall of 183 percent YoY in other income to Rs.103 crore from Rs.258 crore year ago contributed significantly to lower income for the quarter.
“Trading profit contributed only Rs.16 crore to other income, while commission from exchange was Rs.68 crore and recovery from improved assets was Rs.19 crore,” Tauro said.
Similarly, income from advances was marginally down to Rs. 1,344 crore from Rs.1,377 crore in same quarter year ago. Income from investments was Rs.967 crore as against Rs.1,030 crore year ago.
The bank’s net interest income (NII), however, shot up by 45 percent to Rs.455 crore due to reduction in cost of deposits by 180 basis points.
Similarly, net interest margin (NIM) went up slightly to 2.8 percent from 2.4 percent YoY.
The bank’s aggregate business stood at Rs.98,272 crore, comprising Rs.58,928 crore deposits and Rs.39,343 crore advances.
The bank’s net non-performing assets, however, jumped to 1.3 per cent or Rs.512 crore from 0.73 percent (Rs.263 crore) same period year ago and gross NPA to 2.53 percent (Rs. 995 crore) from 1.77 percent (Rs.648 crore).
As a result, return on assets (RoA) declined to 0.77 percent from 1.05 percent in the same period a year ago.
