The Hindu Business Line : ING Vysya Bank Q1 net rises 71%

Bangalore, July 26 ING Vysya Bank has reported a net profit of Rs 25.32 crore in the first quarter (Q1) of the current financial year 2007-08 (FY08), a 71.2 per cent increase over Rs 14.79 crore in Q1 of FY07.

The bank’s gross income in Q1 FY08 was Rs 486.38 crore up from Rs 364.07 during the corresponding quarter of the previous year. The rise in gross income was driven by a rise in interest income.

Interest income rose to Rs 428.47 crore from Rs 321.19 crore driven by improved credit offtake. Advances increased 23.3 per cent to Rs 11,810 crore from Rs 9,578 crore.

Expenditure component

Gross expenditure rose to Rs 429.13 crore from Rs 321.87 crore driven by interest expenditure. Interest expenditure increased to Rs 291.18 crore, up by 47 per cent, over the previous year’s Rs 198.19 crore. This was largely on account of aggressive resource mobilisation efforts for meeting growing credit requirements. Deposits grew 25.8 per cent to Rs 16,487 crore from Rs 13,106 crore during the period.

Operating profit

Despite the high interest costs, the bank was able to improve its operating profits to Rs 57.2 crore from Rs 42.2 crore. The improved operating profit was partly bolstered by the reduction in gross non-performing assets.

The bank’s other income, which comprised reduction in gross NPAs, also contributed to the improved profitability.

Other income was Rs 57.91 crore in the first quarter, resulting from the reduction in gross NPAs to 2.52 per cent of gross advances from 4.09 per cent.

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