Riding on the advantage of registering a least gross and net NPAs, Vijaya Bank Executive Director B S Rama Rao on Thursday said the bank posted a net profit of Rs 52.61 crore in the October-December quarter of the 2015-16 fiscal.
“Our bank has posted a net profit of Rs 52.61 crore in the October-December quarter of the 2015-16 fiscal, thanks to the least gross and net NPAs the bank registered in this quarter. Our NPAs have been lesser in the industry for the last 8 to 9 quarters,” Mr. Rao told reporters while announcing the results in Bengaluru.
Giving other reasons for the bank’s good performance, Rao said “this year, we have gross NPA of 6.98 per cent and net NPA of 4.74 per cent. This has added to our profit.”
Also, the bank, like other banks in the sector, has shown good trading profits, Mr. Rao said. “Like many other banks, Vijaya Bank also has shown good trading profits,” he said, adding, “Even transfer deposit registered increase after demonetisation.”
Also, the increase in retail credit by 22 per cent and retail advances helped the bank to perform better, Mr. Rao said.
Spelling out other details of the result, Mr. Rao said the bank’s total income rose to Rs 3,714.37 crore in the quarter under review from Rs 3,237.02 crore in the same period a year ago.
Mr. Rao also said the current deposits grew by 32.40 per cent and the savings bank growth was at an all-time high of 44.46 percent, besides the net interest margin was up by 41 bps, which stood at 2.85 per cent.
Mr. Rao said the retail advances increased to Rs 27,284 crores, up by 22.88 per cent.
Asked demonetisation has affected the public banking sector, Mr. Rao said it is a temporary phenomena which does not affect the demands of the corporate sector.
However, the bank does not visualise any improvement in the economy as of now, Mr. Rao said.
“In this scenario, it is to be seen that domestic business should increase which will help us without depending upon global economy,” he added.
Asked about US President Donald Trump’s protectionist policy, Mr. Rao said it wouldn’t affect the banking sector, but there could be flight o capital from the country if the Fed increases the interest rate, which may affect the Indian economy to some extent.
“I don’t think it will affect the banking sector. It is their own policy and they have every right to do so. Only that we may see flight of capital if the Fed increases the interest rate. This may then affect the Indian economy to some extent,” he said.
Nevertheless, there are plans to tackle the situation if Mr. Trump succeeds in approving protectionist policy by increasing forex to an extent of 390 billion, which has been assured in the union budget, Rao said.
“In the budget we have seen that there is a project for increasing forex to the extent of 390 billion, so we have a good plan of action for stopping things negative to happen,” he said.
