Vijaya Bank on Monday reported a net profit of Rs.136.22 crore in the second quarter ended September 30, 2013, 10 per cent higher than in the same quarter of 2012-13. Announcing the results H. S. Upendra Kamath, Chairman and Managing Director, said the 27 per cent increase in operating profit during the quarter, amounting to Rs.272.89 crore, was a “highlight.” He pointed out that the bank’s performance had been good despite the sluggish credit growth in the overall banking sector.
While deposits increased by 27 per cent, advances increased by 19 per cent during the quarter. Net interest income amounted to Rs.582 crore, 29 per cent higher than in the comparable quarter of the previous year. Net interest margin improved by 16 basis points to 2.26 per cent during the quarter.
Referring to the increasing levels of non-performing assets (NPAs) in the banking sector in the last several quarters, Mr. Kamath said his bank was in a relatively better position. He claimed that the “slippages” accounted for only 4 per cent of the assets that were “restructured,” which cumulatively amounted to Rs.6,662 crore. “We are relatively better off because the average slippage is about 12-15 per cent for public sector banks as a whole,” Mr. Kamath said.
Although gross NPAs increased from Rs.1,897 crore to Rs.1,981 crore at the end of the quarter, the ratio of gross NPAs to assets decreased 3.17 per cent a year ago to 2.77 per cent at the end of the last quarter. Mr. Kamath said the Union Government had injected additional equity to the tune of Rs.250 crore. An extraordinary general meeting had been scheduled for December 12, which would discuss the issue, he said.
