Vijaya Bank posts over 3-fold jump in Q3 profit

State-owned Vijaya Bank Friday reported over three-fold jump in net profit to Rs 37.40 crore for the quarter ended December 31, 2014.

Bengaluru: State-owned Vijaya Bank Friday reported over three-fold jump in net profit to Rs 37.40 crore for the quarter ended December 31, 2014.

It had reported a net profit of Rs 11.39 crore during the October-December quarter, 2013-14.

Total income of the bank rose by 14.89 percent to Rs 3,303 crore in the quarter under review, from Rs 2,875 crore in the year-ago period.

"Our endeavour has been to improve the yield on advances and reduce the cost of the deposits, though it is not visible but on year to year basis whatever basis points we could save on our net interest margin has resulted in improvement in net profit," Vijaya Bank Managing Director & CEO Kishore Sansi told reporters here.

" The treasury has been very very supportive (Rs 158 crore profit)... All these factors put together has contributed to around 200 percent improvement in our net profit," Sansi said.

Treasury and reduction in the cost of deposits to some extent led to increase in net profit, he added.

The bank's total business for the period ended December 31, 2014 increased to Rs 2,03,187 crore from Rs 1,87,935 crore as of December 31, 2013.

Deposits increased from Rs 1,14,835 crore as on December 31, 2013 to Rs 1,24,051 crore as on December 13, 2014.

Stating that CASA has increased from Rs 20,488 crore as of December 31 2013 to Rs 23,671 crore as of December 31 2014, the bank said the percentage of CASA deposits also improved to 19.08 percent from 17.84 percent.

Advances increased to Rs 79,136 crore as on December 31, 2014 from Rs 73,100 crore as on December 31, 2013.

Stating that there has been increase in total provisions, Sansi said, "We have made the total provision of Rs 313 crore. There is a steep increase of little more than 100 percent on the provisions, out of this major increase in the provisions for NPA we have done to the tune of 328 crore as against 83 crore last year."

The bank said its gross NPA ratio as on December 31, 2014 is 2.92 percent, and Net NPA ratio is 1.89 percent, adding that its provision coverage ratio is at 65.77 percent as on December 31, 2014.

Sansi said the Bank has issued Tier II (Basel III) compliant bonds of Rs 500 crore in October'14.

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