The net profit of Vijaya Bank declined by over 39 per cent during the fourth quarter ended March 31, 2014, while its income rose by 13.02 per cent, a pattern evident in the full fiscal performance too for which higher provisioning was cited as the reason.
Briefing presspersons here on Tuesday, Chairman and Managing Director V. Kannan said a few extraordinary items, essentially provisioning, amounting to around Rs.300 crore, pulled down the profits. Total provisions and contingencies in the fourth quarter were Rs.196.89 crore as against Rs.164.10 crore in the year-ago period. It went up to Rs.687.82 in 2013-14 from Rs.536.42 in the previous fiscal.
Mr. Kannan said the provision for mark-to-market losses and an additional provision for pension and wages were the key items. Employee cost for the last fiscal included an amount of Rs.119 crore (Rs.119 crore), being the amortisation of expenses as per RBI guidelines pertaining to second option for pension for serving employees and enhancement in ceiling of gratuity.
Total income in the fourth quarter was Rs.3,029 crore (Rs.2,680 crore), while net interest income went up by 1.77 per cent to Rs.526.37 crore (Rs.517.23 crore). Net interest margin dropped to 1.92 per cent (2.21 per cent). In 2013-14, total income increased by 18.20 per cent to Rs.11,417 crore from Rs.9,659 crore. The net profit for the full fiscal dropped by 28.98 per cent to Rs.415.91 crore from Rs.585.61 crore.
Vijaya Bank, Mr. Kannan said, was looking at a 19 per cent growth in deposits and advances during the current fiscal, while in 2013-14, deposits grew by 28 per cent and advances 17 per cent. “Our focus was on CASA and retail deposit,” he said, adding the bank wanted to be recognised as an efficient bank.
Gross NPA was Rs.1,986 crore in the last quarter. It included an addition of Rs.568 crore and a cash reduction of Rs.169 crore. In the full fiscal, NPA additions were Rs.2,174 crore (Rs.1,601 crore), while the cash recovery was Rs.436 crore.