Vijaya Bank reported an 11.68 per cent drop in net profits for the April-June quarter on increase in provisioning for bad loans and higher tax expenses.
The Bengaluru-headquartered public sector bank reported a net profit of ₹142.59 crore for the quarter ended June 30, 2015, against a net of ₹161.46 crore in the corresponding quarter last year.
Net interest income, the difference between interest earned and expended, grew 24 per cent to ₹662.23 crore (₹535.49 crore).
The provision coverage ratio stood at 60.59 per cent.
Tracking the results, Vijaya Bank shares ended 2 per cent higher at ₹40.15 on the BSE on Thursday.
Deposit growth Advances were up 10 per cent, while deposits grew 1.52 per cent.
Tax expenses also saw a sharp increase to ₹103.78 crore (₹35.07 crore).
The gross non-performing assets (GNPAs) of the bank grew 39 per cent to ₹2,870.71 crore (₹2,068.7 crore). The GNPAs as a percentage of total advances increased to 3.39 per cent from 2.68 per cent.
The net NPAs posted a higher growth of 53 per cent at ₹2,057.63 crore for the June quarter (₹1,347.11 crore).
Net NPAs as a percentage of total loans rose to 2.45 per cent from 1.77 per cent.