BANGALORE: Vijaya Bank reported a net profit of Rs. 92.73 crore for the third quarter of 2006-07, recording a 58 per cent increase over the corresponding period in the previous year.
Briefing reporters here on Saturday, the Chairman and Managing Director, Prakash P. Mallya, said, "We have improved our profitability despite an increase in cost of working funds." The operating profit was Rs. 172.23 crore, marginally up from Rs. 170.98 crore. The increase in net profit was largely on account of lower provisions for the current year.
The bank has changed its accounting method of amortisation of transfers to the held to maturity category from the available for sale category.
The new standard, "constant yield method", has resulted in lower amortisation of Rs. 34.87 crore. The new standard that conforms to U.S. GAAP (Generally Accepted Accounting Principles) also contributed to the bank's bottomline.
Gross income was Rs. 804.83 crore against Rs. 668.36 crore. The improved income was largely due to an increase in interest income that rose to Rs. 731.87 crore from Rs. 594.26 crore.
The bank managed to reduce its gross non-performing assets ratio to 2.51 per cent from 2.98 per cent.