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VIJAYA BANK NET PROFIT CROSSES RS.500 CRORE, UP
93%
TOTAL BUSINESS CROSSES RS.100000 CRORE
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HIGHLIGHTS FOR FULL FINANCIAL YEAR
-
Operating Profit
at Rs.1057 Crore, up 17.58% y-o-y
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Net Profit
at Rs.507 Crore, registering 93.28% growth
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Net Interest Margin
at 2.54% vs. 2.04% last year
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Net Interest Income
up 28.83%
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Return on Assets
improved from 0.59% to 0.76%
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Total Business
up by 15% to Rs.1,03,867 Crore
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Deposits
up by 13.56% to Rs. 61,932 Crore
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Gross Advances
up by 16.89% to Rs. 41,935 Crore.
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Gross NPA ratio
at 2.37%,
Net NPA ratio
at 1.40%
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Capital Adequacy at 12.50
% vs. 13.15% as at March 2009
HIGHLIGHTS FOR Q4
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Operating Profit up by 0.28% to Rs.314.37 Crore
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Net Profit
up by 28% to Rs.130.92 Crore.
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Net Interest Income
growth at 21%
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NIM
improves from 2.29% to 2.73% q-o-q
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Return on Assets
up from 0.68% to 0.73%.
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2009-10 was a year of major milestones for Vijaya Bank. Bank’s
net profit rose to an all time high of Rs.507.29 Crore while business volumes crossed Rs.100000
crore to reach Rs. 1,03,867 Crore. SB portfolio also crossed Rs.10000 Crore mark with a Y-o-Y
growth of 20%. Bank also continued to show improved performance in the sphere of core
earnings.
"Our FY10 financials show significant improvement compared to last year, especially from the
viewpoints of efficiency and profitability. Consistent growth in core earnings continues to be
the bank's strong point", Shri Albert Tauro, C&MD of Vijaya Bank informed the media at a
Press Conference at Bangalore.
Driven by 28.83
% growth in
Net Interest Income, operating profit for the full year increased to Rs. 1057 Crorecompared to Rs.899 Crore for previous financial. Bank's net profit of
Rs.507 Crore was arrived at after reckoning provision for wage arrears of Rs.114 crore, provision
for employee benefits to the tune of Rs.182 Crore, provision for taxes
of Rs.194 Crore and provision for non performing advances to the tune
of Rs.474 Crore. Under profitability, Return on Assets for the year worked out to
0.76% while Net Interest Margin (NIM) stood at 2.54%.
Interest on advances for the year recorded a growth of 0.23%, with an Yield on Advances of 10.26%. Interest expenses for the year were contained at Rs.3752
Crore, thanks to a 8.78% decline in interest paid on deposits. Operating expenses recorded a 15.89%
growth during the year, mainly due to additional provisioning towards wage revision and additional liability on account of Employee benefits under AS-15 of
Rs.80 Crore.
Capital to Risk Weighted Assets ratio (CRAR) of the Bank stood at
12.50% (Basel II) with Tier I ratio at 7.69% and Tier II ratio at 4.81%. Under asset quality, Bank
had a gross NPA ratio of 2.37% and net NPA ratio of 1.40% as at March 31, 2010.
For the
stand alone fourth quarter, Bank posted an Operating Profit of Rs.314.37 Crore, compared to Rs.313.48 Crore for the corresponding
quarter, recording a 0.28% growth. Q4 Net Interest Income grew q-o-q by 21%, with NIM improved to
2.73% vis-a-vis 2.29% for the corresponding quarter last year. Net Profit for the
quarter stood at Rs.131 Crore, showing an increase of 28% while ROA is 0.73% as against 0.68%.
BUSINESS & SUPPORT SERVICES
During the year 2009-10, Bank crossed the land mark Rs.1,00,000 Crore
under aggregate business and as at March 2010, business volumes aggregated to Rs.1,03,867
Crore. Overall business was aided by deposits of Rs.61932 Crore (up 13.56%) and advances of
Rs.41,935 Crore (up 16.89%). Bank's SB portfolio growth was also one of the highest, helping
SB deposits to cross the Rs.10,000 Crore mark.
Priority sector advances recorded a 8.13% growth y-o-y to reach Rs.14,543
Crore. Priority advances accounted for 40.53% of Adjusted Net Bank Credit (ANBC) as against
the 40% norm. While agricultural advances posted 19.03% growth to reach Rs.5,372 Crore, MSME
advances were of the order of Rs.5,441 Crore, signifying a y-o-y growth of 19.53%. Advances to weaker sections constituted 9.65% of Adjusted Net Bank
Credit, while loans to women clientele saw a 14.13%growth, accounting for 6.52% of Adjusted Net Bank Credit as against the
5% norm. Bank's education loan portfolio of Rs.535 Crore reflected a y-o-y growth of
24.13%, with number of beneficiaries increasing to 28475.
Other developments of significance during the year include the
following:
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57 additional branches and 71 additional ATMs were opened during the year
taking the branch and ATM strength to 1158 and 434 respectively.
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Launched new schemes/services, such as, V-Mobile Banking and V-
GenU
TH Unnati, a recurring deposit scheme for GenNext clients.
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Under IT enabled Financial Inclusion, Vijaya Vikas Smart Card was launched in
5 Centres, including the Bank's three lead districts.
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Nearly 4 lakh clients of the Bank have registered under SMS alert
facility.
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Retail Assets Centralized Processing Centres (RACPC) strengthened towards
giving a major impetus to the retail portfolio.
GUIDANCE - MARCH 2011
Bank aims to reach a business level of Rs.126000 crore, with a y-o-y
growth of about 20%. Business portfolio is envisaged to be further broad based, with
containment of high cost liabilities/low yielding assets, with a predominantly retail
bias. New initiatives during FY11 include moves to launch phone banking and online trading
services. Under delivery channels, Bank aims to expand its branch network by 100 and ATM strength
by 250 by March, 2011. Asset quality is targeted to receive added focus, with Gross NPA ratio and
Net NPA ratio pegged to be kept at less than 2% and 1% respectively. Thrust on retail and core
business, with added emphasis on GenNext clients, is also expected to improve Net Interest Margin
(NIM) to the 3% benchmark and RoA to 1%. Finally, Bank is set to implement its roadmap already
drawn up under Total Financial Inclusion.
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