Bangalore, July 25 (Inditop.com) State-run Vijaya Bank returned to the black by posting a net profit of Rs.143 crore for the first quarter this fiscal as against a net loss of Rs.766 million in the same period of previous fiscal.
“Our core earnings during the first quarter have been impressive despite slackened business growth. A year-on-year growth of 54 percent in net interest income (Rs.341 crore) and higher net interest enabled us to return to black from red a year ago,” Vijaya Bank chairman and managing director Albert Tauro told reporters here Saturday.
The return to profits has been reckoned with one-time provision of Rs.65 crore towards wage arrears and Rs.44.4 crore for superannuation benefits.
The bank’s operating profit for the quarter under review increased to Rs.210 crore, posting 35 percent growth from Rs.155 crore a year ago.
Net interest margin has also increased by 60 basis points to 2.38 percent from 1.68 percent year ago.
Total business increased to Rs.91,802 crore, comprising Rs.54,895 crore under deposits and Rs.36,907 crore under advances.
Cost of deposits declined to 6.82 percent from 7.16 percent year ago.
“Interest on advances grew by 15 percent with yield of 10.72 percent. Similarly, total income grew by 15 percent to Rs.1,463 crore with the help of trading income (Rs.72.3 crore) and other income (Rs.162 crore),” Tauro said.
The bank has set a business target of Rs.110,000 crore for this fiscal, comprising Rs.66,000 crore from deposits and Rs.44,000 crore from advances.
