Vijaya Bank posted a 65.45 per cent decline in profit at ₹79.56 crore for the third quarter (Q3) of this fiscal, compared with ₹230.28 crore in the same period last year. This was largely due to the steep increase in provisioning for stressed assets.

The bank’s total income fell 7.09 per cent to ₹3,450.81 crore (₹3,714.37 crore in the year-ago quarter).

RA Shankara Narayanan, MD and CEO, Vijaya Bank, said: “Our profits are lower due to heavy provisioning. But our operating profit grew 11.59 per cent at ₹768 crore as against ₹688 crore last year.”

Gross non-performing assets (NPAs) fell to 6.17 per cent (6.98 per cent), and net NPAs to 3.99 per cent (4.74 per cent).

The provision-coverage ratio improved to 61.25 per cent (55.44 per cent last year).

Net interest income for the quarter increased 27.25 per cent to ₹1,154 crore. Net interest margin (NIM) rose to 3.34 per cent from 2.05 per cent in the corresponding quarter of the previous year. Total provisions and contingencies stood at ₹676.92 crore (₹416.95 crore).

Deposits, advances Yield on advances stood at 9.09 per cent against 10.12 per cent clocked last year. The cost of funds this quarter fell to 4.95 per cent compared with 5.97 per cent last year.

The bank’s total business stood at ₹2,48,853 crore. Deposits came in at ₹1,31,963 crore, and advances at ₹1,10,622 crore.