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Vijaya Bank posted a Net Profit of Rs.108.43 Crore for the 2nd quarter of the
current financial year against Net Profit Rs.79.88 Crore for the comparative previous quarter,
registering a 35.74% growth. Bank’s operating profit growth for the 2nd quarter was also
quite robust at 55.44%, amounting to Rs.233.94 crores
“This is the fifth successive quarter in which we have clocked strong numbers in Net Interest
Income. Consistent growth in core income has been a key to the Bank’s improved efficiency and
profitability”, Shri Albert Tauro, C&MD of the Bank informed the media at
Bangalore.
For the stand alone 2nd quarter, Net Interest Income (NII) growth worked out
to 35.32%, driven by a 3.5% growth in total income and a reduction of 2.8% in total
expenses. Core earnings were helped by a Yield on Advances of 10.56% and a 108 bps decline in
cost of deposits (Y-o-Y) to 6.52 %. Net Interest Margin (NIM), key indicator of efficiency in
funds allocation, improved significantly from 2.07% for 2nd quarter of the last year to 2.49% for
2nd quarter of the current financial year. Strong growth in profits also improved Bank’s
Return on Assets from 0.53% to 0.68% over the same period.
Aggregate business of the Bank stood at Rs.95878 Crore, comprising Rs.58115
Crore of deposits and Rs.37763 Crore of advances. Priority sector advances of the Bank
aggregated to Rs.13344 Crore. Within priority advances, agricultural loans were of the order
of Rs.4305 Crore, while loans to MSE sector clocked a 18.87% growth to reach Rs.4895
Crore. Educational loan portfolio of the Bank was at Rs.500 Crore while loans to weaker
sections stood at Rs.3095 Crore.
As regards asset quality, Gross NPA ratio and Net NPA ratio of the Bank stood
at 2.91% and 1.46% respectively. Capital to Risk Weighted Assets ratio (CRAR – Basel II) stood
at 13.44% as at September 30, 2009.
MAJOR DEVELOPMENTS / INITIATIVES
·
A network of 1124 branches and 375 ATMs under 100% CBS set
up.
·
10 branches opened on a single day in the State of Uttar
Pradesh.
·
2.12 lakh clients registered under SMS Alert facility.
·
Mobile Banking Service (V-Mobile) launched, offering wide range of
facilities like
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Account viewing and mini statement
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Funds transfer – intra and inter-branch/bank
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Utility payment services
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Mobile Recharge
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Donation to Trusts
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E-ticketing
·
Initiatives to nurture premium SB clients,
under V-Platinum scheme.
·
Around 4 lakh GenNext clients under the V-
GenU
TH scheme.
·
Strategic Alliance with Auto majors for
boosting vehicle loans.
·
Festive offer (reduced interest rates and
concession in processing fees) in the housing and
vehicle loan segments.
·
Extension of e-enabled Smart Card (Vijaya Vikas)
under Financial Inclusion in Dharwad district, Karnataka.
GUIDANCE MARCH 2010
·
Aggregate business growth @ 22% to Rs.1,10,000
Crore, comprising Rs.64,000 Crore under deposits and Rs.46,000 Crore under advances.
·
CASA Y-o-Y growth targeted at 25%
·
Improved margins – Net Interest Margin of at least
2.7%.
·
Launching of Online Trading Portal and Phone
Banking services.
·
Re-entry into insurance business.
·
Net NPA to be contained within 1%.
·
Extension of Smart Card project under
Financial Inclusion (Vijaya Vikas) to additional centers
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