The Hindu Business Line : ING Vysya Bank sells stake in ING Investment Management

THE ING Vysya Bank has decided to sell its stake in the ING Investment Management (India) Company Pvt Ltd.The decision was made at the ING Vysya Bank board meeting on Thursday.Currently ING Vysya Bank holds 17.6 per cent stake in ING Investment Management, which is the asset management company of ING mutual fund. The entire stake in the investment management company falls in the `Held to maturity category' of investments of the bank.

Speaking to Business Line, Mr Ned Swarup, acting managing director of ING Vysya Bank, said "The decision was taken for freeing more capital for the bank's own expansion."

The bank reported a net profit of Rs 4.86 crore for the third quarter (Q3) of this financial year, down 24 per cent from the corresponding period of the last financial year. In Q3 of the last financial year, the bank had reported a profit of Rs 6.37 crore. In Q2 this year the bank reported a profit of Rs 19.7 crore.

The drop was contributed by a reduction in the operating profit in Q3 to Rs 42.84 crore, down from the corresponding period of the last financial year's figure of Rs 44.51 crore. The drop in operating profits was contributed by a sharp increase in operating expenditure. The gross expenditure increased sharply in Q3 over the corresponding period of the last financial year to Rs 307.05 crore, up from Rs 245.27 crore. The increase was contributed by a rise in interest expenditure, which in Q3 was Rs 187.95 crore, up from Rs 151.14 crore during the corresponding period of the last year. Operating expenditure also went up to Rs 119.10 crore, up from Rs 94.13 crore. Provisions, however, were lower in Q3 at Rs 32.65 crore (Rs 34.08 crore).

Total deposits grew by 18.07 per cent (year-on-year) from Rs 10,642.78 crore as at the end of December 2004 to Rs 12,565.63 crore as at end of December 2005. During the same period, current deposits showed a growth of 8.73 per cent, while savings deposits grew by 20.53 per cent and term deposits (including Certificate of Deposits) grew by 19.05 per cent.

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