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VIJAYA BANK NET PROFIT UP AT 143.38 CRORE
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HIGHLIGHTS
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Operating Profit at
Rs.209.77 Crore,
up 35.47% over Q1 last year.
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Net Profit at Rs.143.38 Crore compared to Net Loss of Rs.76.64 Crorefor Q1 last
year.
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Net Interest Income growth at
53.75%.
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Net Interest Margin (NIM) at
2.38%, vs. 1.68% for Q1 last year.
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Total business at Rs.91802 Crore, comprising
Rs.54895 Crore under deposits and
Rs.36907 Crore under advances.
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Capital Adequacy (Basel II) at
13.34%.
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Cost of Deposits at
6.82%, vs 7.16% for Q1 of last year.
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Return on Assets at
0.93%.
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Vijaya Bank posted a
Net Profit of Rs.143.38 Crore for the first quarter of 2009-10, compared to a Net
Loss of Rs.76.64 Crore for corresponding quarter last year.
"Our Q1 core earnings have been very impressive, especially in the light of somewhat slackened
business growth. Our Net Interest Income continued to feature progressive improvement
sequentially as well as on Q-o-Q basis, leading to a robust growth in Operating Profit", Shri
Albert Tauro, C&MD of Vijaya Bank informed the media at a Press Conference at Bangalore.
Driven by
53.75
% growth in Net Interest Income, Operating Profit for the first quarter was Rs.209.77 Crorecompared to Rs.154.84 Crore for the
corresponding quarter of last year. Net Profit of Rs.143.38 Crore is arrived at after
reckoning for provision for wage arrears of Rs.65 Crore, provision for superannuation benefits to the tune of Rs. 44.38 Crore, provision for taxes of
Rs.102.75 Crore and provision for non performing advances to the tune of Rs.104.60
crore. There was write back of provision under Investments to the tune of Rs.158.98 Crore
mainly due to efficient management of Investment portfolio. Return on Assets for the quarter worked out to
0.93%.
Interest on advances for Q1 recorded a growth of 14.68% over Q1
of last year, with Yield on Advances of 10.72%. Total income was helped by a trading income of Rs. 72.28 Crore, driving
Other Income up by 51.70 % to Rs.162.41 Crore.
Operating expenses recorded a 68.72% growth during the quarter,
mainly due to additional provisioning of Rs.65 Crore towards wage revision under the ongoing
bipartite settlementand Rs.44.38 Crore on account of superannuation benefits.
First quarter also featured continuation of loan restructuring for
stressed accounts in line with the RBI stipulations. Up to June 30, 2009, in all, 17118
accounts were restructured under the scheme, amounting to Rs.2422 Crore, including 4367 MSME
accounts amounting to Rs.143 Crore & 4917 Housing Loan accounts amounting to Rs.278
crore.
Capital to Risk Weighted Assets Ratio (CRAR) stood at 13.34% (Basel
II ) with Tier I ratio at 8.05% and Tier II ratio at 5.29% .
BUSINESS & SUPPORT SERVICES
Bank had a business of Rs.91802 Crore as at June 30, 2009, comprising
deposits of Rs.54895 Crore and advances of Rs.36907 Crore. Within overall advances, priority
sector advances recorded 12% growth (y-o-y) to reach Rs.13277 Crore. While agricultural
advances posted 20% growth to reach Rs.4207 Crore, MSME advances were of the order of Rs.4534
Crore, signifying a y-o-y growth of over 17%. Advances to weaker sections constituted 8.55% of Adjusted Net Bank
Credit, while loans to women clientele saw a 30% growth, accounting for 5.82% of Adjusted Net Bank
Credit as against the 5% norm. Under education loan, the portfolio of Rs.444.83 Crore
reflected a y-o-y growth of 36%, with number of beneficiaries increasing from 20047 to 24542
between June 2008 and June 2009.
Achievement of 100% CBS was a significant milestone for the Bank,
paving way for re-invigoration of its Alternative Delivery Channels like ATMs, Internet Banking and
tax remittance. As at June 2009, Bank had 369 ATMs, with its customers having access to over
42000 ATMs networked under NFS. The Bank's Debit Card base stood at 7.96 lakh, with good
improvement in Card hits. SMS alert facility, provided to the Internet Banking customers recently,
has been well received, with resultant improvement in number of Net accounts. The Bank had
1103 branches as at June 30, 2009, spread over 28 States and 4 UTs.
GUIDANCE - MARCH 2010
Bank aims to reach a business level of Rs.110000 crore, with a y-o-y
growth of about 22%. Business portfolio is envisaged to be further broad based, with
containment of high cost liabilities and higher credit volumes aimed at productive
segments. Retail segment is planned to be a focus area while credit to agriculture will
receive greater focus, especially in potential Regions. New initiatives contemplated during
FY10 include launching of mobile banking and online trading services as also to offer value added
services like e-ticketing, utility payment and funds transfer facility under Internet (V-Net)
banking. Under delivery channels, Bank aims to expand its branch network to 1200 and ATM strength
to 500 by March, 2010. Towards the end of the last financial, Bank had launched "Mission NRI
5000" at its Kochi Region for stepping up NRI business. The mission has been extended to other
potential regions like Hyderabad, Chandigarh, Ahmedabad and Mangalore which will help augment the
level of stable and low cost NR deposits.
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