Vijaya Bank’s net profit for the quarter ended June 30, 2011, dipped 58.37 per cent to Rs 72.22 crore, on account of additional provisioning for NPAs and providing for marked-to-market (MTM) losses. Last year, net profit stood at Rs 173.48 crore.
“This quarter, we made additional provisioning for NPAs of Rs 108 crore on account of changed RBI norms, and provided Rs 76 crore towards MTM losses as the yields are now going northwards. Besides, there was also higher interest payout on savings bank accounts of Rs 75 crore for the year,” said Mr H.S. Upendra Kamath, Chairman and Managing Director, Vijaya Bank.
According to him, without providing for these, “notionally, net profit would have touched Rs 200 crore.”
The bank’s total provisions stood at Rs 253.29 crore, of which those for NPAs stood at Rs 154.28 crore. With the bank having fully adopted a system-driven NPA identification process, “several NPAs are coming to the surface,” said Mr Kamath, explaining the reason for a spike in NPAs.
Gross NPAs stood at 2.83 per cent (2.32 per cent), while net NPAs were 1.65 per cent (1.35 per cent). The bank made cash recoveries of Rs 105 crore during the quarter.
The net interest income was down 5 per cent to Rs 424 crore (Rs 444.90 crore).