Vijaya Bank has posted a 2 per cent increase in net profit at Rs 126.73 crore for the quarter ended December 31, 2012, against Rs 124.27 crore in the same period last year.

The marginal increase was due to increased provisioning as mandated by the Reserve Bank of India coupled with a slowdown in the economy.

The advances and deposits increased to Rs 65,005 crore and Rs 89,315 crore, respectively.

In the quarter, Vijaya Bank’s total business touched an all-time high of Rs 1,54,320 crore.

Interest income on advances increased by 7.50 per cent and income on investments, by 13.03 per cent.

According to H. S. Upendra Kamath, CMD of Vijaya Bank, despite the current economic situation and increased provisioning requirement in the case of standard restructured accounts, the bank’s revised strategy helped improve its performance.

The bank performed well on the recovery front. Recovery from the written-off accounts at the end of the quarter stood at Rs 26.78 crore against Rs 18.65 crore in the quarter ended December 2011, an increase of 43.59 per cent.

Total interest income of the bank for the nine months ended December was Rs 5,025 crore against Rs 4,403 crore in the corresponding period of the previous year, an increase of 14.12 per cent.

Investment income during the period increased to Rs 1,591 crore against Rs 1,381 crore, a growth of 15.25 per cent.

The bank said that due to constant vigil and monitoring, gross and net NPA ratios could be contained at 2.91 per cent and 1.71 per cent, respectively, against 3.17 per cent and 1.90 per cent in the September quarter.

>venkatesh.ganesh@thehindu.co.in

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