Restructuring of stressed assets, provision for bad loans and higher wages dragged public sector Vijaya Bank’s net profit 28.73 per cent to ₹96.80 crore in the fourth quarter of 2014-15.

Total income for the period rose 12.43 per cent to ₹3,406.12 crore, while earnings per share stood at ₹1.13 (₹2.49).

Operating profit Operating profit of the bank too, dropped 6.12 per cent to ₹312.35 crore. “This quarter (Q4), bank’s profitability got affected by staff wage settlement to the tune of ₹208 crore and restructure of four major stressed assets in power and infrastructure space of ₹421 crore. Total provisions for non-performing assets (NPAs) was ₹180.42 crore,” Kishore Kumar Sansi, Chairman and Managing Director (CMD) of the bank said.

For Q4, the bank’s gross NPA was higher at ₹2,443 crore (₹1,986 crore), net NPA at ₹1,691 crore (₹1,262 crore) while percentage of gross NPAs stood at 2.78 per cent as against 2.41 per cent last year. Net NPAs stood at 1.92 per cent as against 1.55 per cent last year.

Deposits Net interest income (NII) moved up 18.41 per cent to ₹623.30 crore from ₹526.37 crore in the corresponding quarter of the previous year while net interest margin (NIM) was flat at 2.02 per cent in the current quarter.

Cost of deposits declined marginally to 7.99 per cent in Q4 (7.98 per cent).

Yield on advances for the same period also dropped to 11.17 per cent (11.26 per cent). Yield on investments however, showed an uptick at 8.39 per cent (7.69 per cent).

CASA deposits increased to ₹25,721 crore from ₹22,860 crore for the fourth quarter of the previous year.

The bank’s total deposits were up 1.65 per cent as on March 31 to ₹1.26 lakh crore. Gross advances also increased 6.39 per cent to ₹87,692 crore in FY 2014-15.

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