Bangalore: Spurred by growth of interest income and control over expenditure on interest, Vijaya Bank successfully achieved a turnaround, posting a net profit of Rs 143.38 crore in the first quarter of 2009-10 compared to a net loss of Rs 76.64 crore in the same period 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", Bank Chairman and Managing
Director Albert Tauro told a press meet, releasing highlights
of the Q1 performance here.
Driven by 53.75 per growth in Net Interest Income,operating
profit for Q1 was Rs 209.77 crore, compared to Rs 154.84 crore
for the corresponding quarter last year, he said.
Net Profit of Rs 143.38 crore was arrived at after
reckoning for provision for wage arrears of Rs 65 crore,
superannuation benefits of Rs 44.38 crore, provision for taxes
of Rs 102.75 crore and non-performing advances to the tune of
Rs 104.60 crore, he said.
There was write back of provision under investments of Rs
158.98 crore, mainly due to efficient management of investment
portfolio, he noted, adding that return on assets for the
quarter worked out to 0.93 per cent.
Tauro said the Bank had a business of Rs 91,802 crore as
on June 30, 2009, comprising deposits of Rs 54,895 crore and
advances of Rs 36,907 crore.
The First quarter also featured continuation of loan
restructuring for stressed accounts in line with the RBI
stipulations, he said.
"Yes there was some pressure on quality of assets," he
said, pointing to the rise in NPA to 2.94 per cent from 1.71
per cent during the first quarter.
Personal loans, Commercial loans and real estate loans
contributed to the rise in NPA, he said and added that efforts
would be made to bring it down in the coming quarter.
The Bank aims to reach a business level of Rs 1,10,000
crore, with Y-o-Y Growth of about 22 per cent by March 2010,
Tauro said, commenting on the guidance for the year.
Business portfolio was proposed to be further broadbased,
with containment of high cost liabilities and higher credit
volumes aimed at productive segments, he said.
New initiatives contemplated during FY10 include launch of
mobile banking and online trading servics, as also offer of
value added services like e-ticketing, utility payment and
funds transfer facility under internet (V-NET) banking, he