Higher provisioning for bad loans during the quarter ended September, 2012 dented the net profit of Vijaya Bank. The bank reported a net profit of Rs.123 crore during the quarter, down 39 per cent over the corresponding quarter of the previous year. The operating profit was Rs.214 crores, 37 per cent lower on a year-ago basis. Higher provisions, which increased 12 per cent on an annualised basis, reflected the stress due to the NPAs. While gross NPAs, as a proportion of all assets, worsened from 2.54 per cent to 3.17 per cent, net NPAs increased by almost 50 basis points to 3.17 per cent. There was “no sectoral concentration” in NPAs, said H. S. Upendra Kamath, Chairman and Managing Director. The bank had a provision coverage ratio of about 62 per cent at the end of the second quarter.
Admitting to growing “slippage” of accounts during the last quarter, Mr. Kamath said the bank had succeeded in bringing “high cost” deposits under control.