The Hindu Business Line : ING Vysya net surges 195 pc

The bank statement said during the third quarter of the financial year 2007 profits were Rs 14.33 crore up from Rs 4.86 crore in the corresponding period of the previous year. Profit before tax rose 109.22 per cent to Rs 21.32 crore during the same period.

The bank's operating profits was Rs 61.09 crore, up from Rs 42.84 crore. The compressed net profits was on account of provisions of Rs 40 crore.

Better credit offtake

The improved profits were largely on account of improved credit offtake and the increased interest income. Gross income of the bank rose to Rs 385 crore up from Rs 350 crore. The improved income was lead by the rise in interest income that rose to Rs 344.35 crore from Rs 307.83 crore during the period.

A 11.32 per cent increase in credit offtake helped the bank. During the same period, ING contained its cost of working funds at 5.25 per cent a 33-basis points increase over the corresponding quarter of the previous year. At the same period, the bank's yield on advances rose to 9.35 per cent an improvement of over 90 basis points.

Both, the gross and net NPA levels showed significant improvement. The gross NPA moved from 4.66 per cent as on December 2005 to 3.34 per cent as on December 2006, and the net NPAs improved from 1.66 per cent to 1.27 per cent during the same period. In absolute numbers, the bank managed to bring down its gross NPAs to Rs 369.23 crore from Rs 468 crore in the third quarter of the financial year 2006.

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