Vijaya Bank on Monday reported 91.1 per cent drop in net profit at Rs. 11.39 crore for the October-December quarter due to higher provisioning for bad loans and rise in operating expenses.
The Bangalore-based public sector lender had posted net profit of Rs. 126.73 crore for the same quarter of last fiscal, 2012-13.
The bank’s total income in the third quarter ended December 31, 2013 increased to Rs. 2,874.60 crore, from Rs. 2,357.05 crore in the year-ago period, the bank said in a BSE filing.
Provisions other than tax and contingencies during the quarter increased to Rs. 159.41 crore as against Rs. 102.72 crore in the same period of last fiscal.
At the same time, operating expense of the bank rose to Rs. 456.39 crore during the quarter as compared to Rs. 319.18 crore.
As of December 31, bank’s portfolio quality improved, with gross NPAs (Non Performing Assets) rising to 2.67 per cent of gross advances, as against 2.91 per cent a year ago.
Its net NPAs during the third quarter declined to 1.57 per cent, from 1.71 per cent in the period a year earlier.
During the three quarters (April-December) of 2013-14, the bank’s net profit declined by 22 per cent to Rs. 280.07 crore, as against Rs. 361.46 crore in same period of 2012-13.
Its total income rose to Rs. 8,387.03 crore for the nine months, from Rs. 6,978.68 crore in the year-ago period.
Shares of Vijaya Bank were trading at Rs. 36.55 apiece, down 1.62 per cent on the BSE.