Buffeted by the slackening credit offtake and shrinking interest spreads, Vijaya Bank, on Friday, reported a marginal increase in net profit during 2012-13. It made a net profit of Rs.585.61 crore, 0.80 per cent higher than a year earlier. In fact, the bank reported a 9 per cent decline in operating profit - from Rs.1,230 crore in 2011-12 to Rs.1,122 crore in 2012-13.
Although the full-year profit remained stagnant, the bank reported a net profit of Rs.224 crore during the fourth quarter, 24 per cent higher than in the same quarter of 2011-12,mainly because of a tax write-back of Rs.41 crore and a doubling of “other income”.
The bank’s Chairman and Managing Director, H. S. Upendra Kamath, admitted that poor credit offtake, especially from the infrastructure and industry sectors, affected the bank’s performance during the year.
He said the bank hoped to address the decline in net interest margin — from 2.47 per cent in 2011-12 to 2.13 per cent in 2012-13 — by “shedding” costlier bulk deposits in the current year. “Our target is to get bulk deposits as a proportion of all deposits down to 15 per cent from their current level of 22 per cent,” Mr. Kamath said.
During the year, the bank “restructured” 15 accounts in the infrastructure sector, amounting to Rs.1,391 crore. Although provisioning for NPAs increased only marginally during the full year, the bank’s provisioning for non-performing assets increased by almost one-fourth during the last quarter — from Rs.181 crore in the last quarter of 2011-12 to Rs.224 crore in the last quarter of 2012-13.
Hero MotoCorp to pay Rs.60 per share
Two-wheeler maker Hero MotoCorp posted 4.86 per cent decline in its net profit at Rs. 574.23 crore for the fourth quarter ended March 31, 2013, its third successive fall in quarterly profits. The company had registered a net profit of Rs. 603.59 crore in the year-ago period, Hero MotoCorp (HMC) said in a statement.
The net income in January-March 2013 quarter rose by 1.84 per cent to Rs. 6,145.75 crore from Rs. 6,034.93 crore in the same period last year. . FY 2013 has been a rough year for the overall Indian auto sector. Weak macroeconomic sentiment, coupled with subdued consumer confidence adversely impacted the industrial growth and sales volumes," Hero MotoCorp Managing Director and CEO Pawan Munjal said. Considering the current environment, the auto sector is having tough time in India and Hero MotoCorp is cautiously optimistic about the growth prospects in the near-term, he added.
For the full fiscal 2012-13, HMC reported a decline of 10.93 per cent in its net profit at Rs. 2,118.16 crore against Rs. 2,378.13 crore in the previous fiscal. The company's net income for 2012-13 rose marginally to Rs. 23,768.11 crore from Rs. 23,579.03 crore in 2011-12. The directors recommended a dividend of Rs 60 per share of Rs. 2 each.
The board of directors has recommended dividend of 190 per cent.
Cholamandalam pays Re. 1 final
Cholamandalam Investment and Finance Company has announced a final dividend of 10 per cent (Re. 1 per share) for the year ended March 31, 2013. Including the interim dividend of 25 per cent (Rs. 2.50) already paid the total dividend will be 35 per cent.
Total income grew by 43 per cent to RS. 2,556 crore from Rs. 1,788 crore while the profit after tax was sharply higher by 78 per cent at Rs. 307 crore against Rs. 173 crore in the previous year.