The Hindu Business Line : Vijaya Bank Q3 net rises to Rs 58.8 cr

THE public sector Vijaya Bank has reported a six per cent increase in net profit for the third quarter of this financial year at Rs 58.80 crore compared with Rs 55.67 crore earned in the corresponding quarter last year.

However, on a sequential basis, the bank's net profit was down by 22 per cent. In the second quarter, the bank had reported a net profit of Rs 75.05 crore.

Vijaya Bank's higher net profit also comes despite a reduction in operating profit in the third quarter to Rs 170.98 crore from Rs 184.24 crore. The reduced operating profit was on account of higher provisions for employees' wages and increased tax liabilities. Provision for wages were Rs 100.52 crore (Rs 77.98 crore). Provision for taxes was Rs 39.04 crore (Rs 20.94 crore).

However, the bank managed to increase the net profit through reduced provisions for depreciation and non-performing assets. This provision was Rs 73.14 crore (Rs 107.63 crore).

The gross income rose to Rs 668.36 crore (Rs 611.73 crore). The income growth was driven by higher interest income growth that rose to Rs 595.27 crore (Rs 542.93 crore). Gross advances till December this fiscal were Rs 16,307 crore, a 25 per cent increase on a year-on- year basis.

The bank has also managed to contain non-performing assets. Gross NPAs were 2.98 per cent of gross advances. The bank's expenditure rose sharply in Q3 mainly driven by higher interest expenditure.

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Vijaya Bank Q3 net rises to Rs 58.8 cr