Money & Banking

‘Other income' boosts ING Vysya net 37%

Our Bureau Bangalore | Updated on January 19, 2011

Aided by a 28 per cent growth in other income, ING Vysya Bank reported a 37 per cent increase in net profits at Rs 83 crore for the quarter ended December 31, compared with Rs 60.6 crore reported during the corresponding quarter of last year.

Its other income for the quarter stood at Rs 166.8 crore (Rs 130.27 crore). The bank's net interest income grew 12 per cent to Rs 245.9 crore (Rs 219.4 crore). The bank reported an increase in operating costs during the quarter to Rs 253.3 crore (Rs 203.9 crore), on account of increase in staff costs to Rs 145.4 crore (Rs 111.2 crore).

The bank's provision coverage ratio was at 76.4 per cent, and its provisions and contingencies for the quarter stood at Rs 33.6 crore.

During the quarter, it made additional provision of Rs 17.4 crore on account of enhanced standard asset provision for teaser home loans in line with the RBI guidelines, said a press release from the bank. Of this, the bank utilised excess standard asset provision of Rs 14.1 crore. The bank has discontinued teaser rates from December 2010. Commenting on the results, Mr Shailendra Bhandari, Managing Director, ING Vysya Bank, said in the release that the bank recorded a “healthy growth in advances without participating in big-ticket 3G and infrastructure-related lending”.

Gross NPAs have reduced to 2.66 per cent (2.95 per cent), while net NPAs were 0.64 per cent (1.67 per cent).

Published on January 19, 2011

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