Vijaya Bank has reported an 18 per cent decline in its net profit at Rs.124.27 crore for the third quarter ended December 31, 2011, against Rs.151.80 crore in the corresponding period of the previous year.
“The net profit has been impacted as the bank had to provide impairment in value of some accounts, and also prudentially write off some non-performing assets (NPAs) during the quarter,” H. S. Upendra Kamath, Chairman and Managing Director, told presspersons here on Wednesday.
There was a spike in NPA due to slippage of three large accounts, he said. However, the spike was not broad based, he added. The bank made provisions of Rs.111 crore towards NPAs and Rs.39 crore towards diminution in the value of certain borrowal accounts due to restructuring. He said “Our net profits, net interest income, net interest margin and non-performing assets have taken a dent."
