Vijaya Bank Q3 profit up 1.9% at Rs 126 cr
State-owned Vijaya Bank Thursday reported a marginal 1.9 percent increase in net profit at Rs 126.74 crore for third quarter ended December 31, 2012.
Bangalore: Vijaya Bank Thursday reported a marginal 1.9 percent gain in third quarter net profit to Rs 126.73 crore, weighed down by enhanced provisioning towards restructured accounts.
The public lender had posted a net profit of Rs 124.27 crore for the corresponding quarter of last fiscal.
"We have so far restructured from the very start 19,280 accounts amounting to Rs 6,101 crore, of which after recovery and upgradation, today what is outstanding under this restructured book is 11,584 accounts amounting to Rs 4,352 crore", the bank's Chairman and Managing Director H S Upendra Kamath told a press conference here.
Out of the total Rs 6,101 crore, the total slippage was Rs 385 crore, he said. For the December quarter, the bank made a provision of Rs 134 crore towards the restructured accounts.
With advances increasing to Rs 65,005 crore and deposits to Rs 89,315 crore, the bank crossed the total business milestone of Rs 1,50,000 crore mark, with the figure at Rs 1,54,320 crore.
Total income of the bank increased to Rs 2,357.02 crore during the October-December quarter from Rs 2,173.92 crore in the same period of the previous year.
Gross and net NPA ratios as of last month-end stood at 2.91 percent and 1.71 percent respectively as against 3.17 percent and 1.9 percent in the corresponding period of previous fiscal.
Kamath said the bank has taken steps for improving the net interest margin by shedding high cost deposits and improving CASA (Current Account, Saving Account) and yield on advances, among others.
He said the bank's performance in the last quarter was reasonably good considering the present economic scenario and the "other adversities" like increased provisioning requirement in the case of standard restructured accounts.