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Vijaya Bank reported a 22 per cent rise in net profit for the June quarter on increase in net interest income and advances.
The Bangalore-headquartered public sector bank registered a net profit of Rs 161.46 crore against Rs 132.46 crore in the corresponding last quarter.
Net interest income, the difference between interest earned and expended grew 11.37 per cent to Rs 535.48 crore. Total Income for the quarter was up 18.19 per cent at Rs 3,190 crore.
Announcing the results, Vijaya Bank Chairman and Managing Director, V Kannan, said advances were up 13.43 per cent during the June quarter and stood at Rs 77,091 crore. The deposits grew 12.63 per cent at Rs 1,18,677 crore.
Provisions for non performing assets (NPAs) more than doubled to Rs 141 crore against corresponding last quarter's Rs 68 crore.
The Gross NPAs increased to Rs 2,069 crore with the ratio at 2.68 per cent, while the net NPAs stood at Rs 1,347 crore. However, the bank reduced the provision coverage ratio to 63.75 per cent against corresponding last quarter's 67.28 per cent.
Kannan said the bank has sought permission from the Government and the Reserve Bank of India for its proposed plans to raise Rs 600 crore through qualified institutional placement (QIP) to shore up its capital base sometime in September-October this year.
The bank is also considering a bond offering of Rs 500 crore in the current financial year.
Vijaya Bank shares were trading 1 per cent higher Rs 49.45 on the BSE post earnings announcement.
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