Money & Banking

Vijaya Bank Q2 net profit up 41%

Anjana Chandramouly Bangalore | Updated on October 31, 2011 Published on October 31, 2011

Vijaya Bank posted a 41 per cent growth in net profits during the second quarter of this fiscal on the back of better core earnings.

The growth in net profit was despite “overall provisioning for NPAs and marked-to-market investments going up”, said Mr H.S. Upendra Kamath, Chairman and Managing Director, Vijaya Bank.

The bank's yield on advances grew 50 basis points during the quarter, while cost on deposits grew only 35 basis points, thus resulting in a significant increase in interest earned during the quarter.

Consequently, net profits during the quarter grew to Rs 203.53 crore, against Rs 144.31 crore recorded during the corresponding quarter of last fiscal. However, net interest income grew only 5.36 per cent due to higher interest expenditure on deposits. Cost of deposits stood at 7.62 per cent (7.27 per cent).

The bank made provisions for NPAs of Rs 213 crore during the first six months, Mr Kamath said, including Rs 109.22 crore made during the first quarter. Total provisions also moved up to Rs 389.50 crore (Rs 292.32 crore) during the first six months.

Published on October 31, 2011
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