Higher provisioning for staff expenses and mark-to-market losses saw Vijaya Bank’s net profit drop 91 per cent to ₹11.39 crore in the third quarter (Q3) of this financial year from ₹126.73 crore clocked during the same period last year.
The bank’s total income in Q3 rose 21.95 per cent to ₹2,874.60 crore from ₹2,357.02 crore last year. EPS (basic) stood at ₹0.23 (last year, ₹2.55).
During the quarter, the bank set aside ₹297 crore for staff expenses (against ₹207 crore last year).
Provisions and contingencies of the bank increased 55.18 per cent to ₹159.41 crore.
Gross NPA (non-performing asset) rose to ₹1,953 crore (last year ₹1,888.87 crore). However, gross NPA and net NPA ratios declined to 2.67 per cent (2.91 per cent) and 1.57 per cent (1.71), respectively.
Net interest income increased to ₹494.71 crore (from Rs 455.76 crore) and the net interest margin was at 1.90 per cent ( 2.08 per cent last year).
Deposits grew 29 per cent to ₹1,14,835 crore (from ₹89,315 crore), and advances by 12 per cent to ₹73,100 crore (₹65,005 crore).
The bank is in the process of converting the perpetual non-cumulative shares aggregating ₹1,200 crore held by the Government into equity capital to improve the Common Equity Tier I capital.
The bank’s capital to risk weighted assets ratio is at 10.78 per cent (Basel III) with Tier I ratio at 8.11 per cent and Tier II ratio at 2.67 per cent.