Financial Daily from THE HINDU group of publications
Thursday, Apr 21, 2005
Financial Daily from THE HINDU group of publications Thursday, Apr 21, 2005 |
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Corporate Results
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Public Sector Banks Money & Banking - Financial Performance Vijaya Bank annual net down 7.5 pc; to pay 10 pc final Our Bureau
Bangalore , April 20 VIJAYA Bank has reported net profit of Rs 380.57 crore for the year ended March 2005, down 7.5 per cent from Rs 411.31 crore recorded in 2003-04. Vijaya Bank is the first bank to report its annual results for the third year in succession. The bank's board has recommended a final dividend of 10 per cent. Inclusive of the interim dividends, the total dividend payout amounts to 25 per cent. The Chairman and Managing Director, Mr M.S. Kapur, said that the reduction in net profits was largely on account of high depreciation on investments. For the fiscal gone by, Vijaya Bank made a depreciation provision of Rs 318 crore. What also pushed down the net profit was the one-time hit the bank took after transferring Rs 1,093 crore worth of securities to the `Held to Maturity' category as permitted by the Reserve Bank of India last year. This shift resulted in the bank taking a loss of Rs 128 crore. The bank's operating profits also fell during the period by 8.85 per cent to Rs 789.03 crore. This was on account of a 57 per cent drop in treasury income, to Rs 148.90 crore. This also reflected in the bank's gross income, which dropped slightly to Rs 2,447.98 crore from Rs 2,465.78 crore in 2003-04. But income from advances rose sharply during the year to Rs 2,094 crore from Rs 1,940.09 crore on the back of a credit expansion. Gross advances rose by 30 per cent during the year to Rs 14,682.81 crore, powered by retail credit offtake. Gross expenditure rose to Rs 1,658.95 crore from Rs 1,600.14 crore earlier. Though interest expenditure remained almost stable at Rs 1,109.77 crore, operating expenditure rose sharply to Rs 549.18 crore from Rs 497.82 crore. Mr Kapur said that during the year, the bank was also able to make recoveries of over Rs 200 crore. This helped bring down the gross NPA asset ratio to 2.94 per cent, down from the previous year's 3.44 per cent, and the net NPA ratio to less than one per cent. Mr Kapur said that the bank intends to have 1,000 branches by the end of the current fiscal. Last year, it had opened 45 branches. This year it plans to open branches in Singapore and Hong Kong. Vijaya Bank also intends to get a slice of the business opportunities in China and accordingly plans to open a representative office there initially, which would subsequently be upgraded into a branch, he added.
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