Vijaya Bank posted 24.54 per cent lower profits at ₹139.94 crore for the second quarter (Q2) of this financial year due to heavy provisioning, compared with 185.46 crore in the same period last year.

The bank’s total income is higher by 12.28 per cent at ₹3,931.36 crore, compared with the ₹3,501.31 crore recorded in the same quarter last year. EPS stood at ₹1.07 against ₹1.80 recorded last year.

RA Shankara Narayanan, Managing Director and Chief Executive Officer of Vijaya Bank, said: “The bank’s second quarter was impacted by huge provisioning. Otherwise, we have maintained our profits. Operating profits are higher at 3.38 per cent at ₹758.82 in Q2, compared with ₹733.96 posted last year. The bank’s retail credit growth was up by 26.67 per cent. Housing portfolio was commendable at 31.13 per cent growth.”

Talking about amalgamation of Vijaya Bank with Dena and Bank of Baroda, he said “it is going to benefit us (Vijaya Bank) as we will get scale. From the current 2,300 outlets, we will be a 9,000 combined outlet”.

“Still, a lot needs to be done. First, we need to agree upon swap ratio, regulatory approval has to be sought, and then it has to go before the Parlimanet. After all these, then IT harmonisation has to be seamless. Hopefully, we may complete the amalgamation process by June 2019,” he added.

Cost of funds has gone up to 5.31 per cent from 510 per cent last year.

Cost of deposits has come down to ₹5.78 per cent this year, compared with last year’s 5.83 per cent. Yield on advances stood at 9.04 per cent against the 9.60 per cent clocked last year. Yield on funds this quarter is 7.81 per cent, when compared with 7.62 per cent last year.

Net Interest Income (NII) for the quarter increased by 15.58 per cent at ₹1,166 crore. Net Interest Margin (NIM) was at 2.85 per cent compared to 3.04 per cent in the corresponding quarter of the previous year.

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