ING Vysya Bank's net profit for the first quarter of the 2011-12 fiscal grew 36 per cent to Rs 94 crore, compared with Rs 69 crore recorded during the corresponding quarter of last year. “Our growth in profits has been equally driven by interest income and fee income,” said Mr Shailendra Bhandari, Managing Director, ING Vysya Bank, in a press release.
The bank's net interest income grew 10 per cent to Rs 262 crore (Rs 238 crore). “The margins of the bank were under a little pressure, which was anticipated. But it started re-pricing from the middle of the quarter.
“We have not seen the full impact of the benefit of re-pricing during this quarter, but will see in the second quarter,” said Mr Jayant Mehrotra, Chief Financial Officer, during a telephonic interaction. Other income was up 12.9 per cent to Rs 140.5 crore (Rs 124.4 crore).
Slippages lower
The bank also reported reduction in provisions and contingencies at Rs 6.2 crore (Rs 43.9 crore), “because we were able to significantly reduce our slippages,” he added. Mr Mehrotra pointed out that the bank had provided significantly over the last four quarters, and the provisioning-coverage ratio stood at 84 per cent (59 per cent).
“Due to focus on asset growth with quality, the provisions and contingencies for the quarter were primarily towards standard asset provision,” he said. The bank's gross NPAs stood at 2.15 per cent (3.25 per cent, while net NPAs stood at 0.35 per cent (1.36 per cent).
Capital adequacy ratio stood at 15.89 per cent, with the bank raising Rs 970 crore in June 2011. Tier-I capital was at 12.5 per cent.