ING Vysya Bank's net profit for the fourth quarter of 2010-11 rose 34 per cent to Rs 91.3 crore, from Rs 67.9 crore recorded in the corresponding quarter of the last fiscal.
The bank reported this growth after considering the additional impact of about Rs 36 crore on account of the second pension and enhancement in gratuity limits.
However, the bank's net interest income grew only 9 per cent to Rs 268.3 crore (Rs 247.1 crore), while other income was up 15 per cent to Rs 170.5 crore.
An increase of Rs 61.8 crore in staff costs, primarily due to the additional impact on account of retirals of Rs 36 crore, resulted in a 37 per cent increase in operating costs to Rs 295.7 crore.
The bank's gross NPAs (non-performing assets) stood at 2.3 per cent (2.96 per cent), while net NPAs were at 0.39 per cent (1.2 per cent).
Fresh slippages during the quarter were less than 0.25 per cent and substantial increase in provisioning helped lower net NPAs, pointed out Mr Jayant Mehrotra, Chief Financial Officer, ING Vysya Bank.
The provision coverage ratio increased to 83.4 per cent, “perhaps the best in the industry,” Mr Shailendra Bhandari, Managing Director, ING Vysya Bank, pointed out in a press release.
The capital-adequacy ratio of the bank stood at 12.94 per cent (14.91 per cent), with tier-I capital at 9.5 per cent. “Looking at our capital-adequacy ratio and in order to augment our growth, we will certainly raise funds some time this year,” said Mr Mehrotra, adding that the bank could raise anywhere between Rs 300 crore and Rs 1,000 crore.
“The form, size and shape of the capital will depend on market conditions,” said Mr Mehrotra, indicating however that it could be in the form of “equity, debt or a combination of both”.
Aided by a 21 per cent growth in net interest income, the bank reported a 32 per cent growth in net profit to Rs 318.7 crore for the fiscal ended March 31, 2011, compared with Rs 242.2 crore in 2009-10.
The current full-year results are after considering an additional charge of Rs 68 crore towards the second pension option and enhancement in gratuity limits, said the press release.
Net interest income was Rs 1,006.5 crore (Rs 829.8 crore), achieved on the back of improvement in the cost of deposits, which fell to 5.25 per cent (5.33 per cent).
Provisions and contingencies for the current year were at Rs 151.6 crore (Rs 270.4 crore).