NET PROFIT INCREASED TO Rs.524 CRORE
During the year 2010-11, Vijaya Bank clocked the business turnover of Rs.122470 crore. In spite of various challenges like additional burden due to second pension option and increase in the gratuity ceiling and additional provisioning due to system based asset classification and GOI guidelines for achieving progressive increase in the Provision Coverage Ratio, the Bank posted a net profit of Rs.523.83 for the year 2010-11 vis-à-vis ` 507 crore for the previous year. "After crossing all the hurdles encountered during 2010-11, the Bank is poised for improved performance to scale new heights in the days ahead" said Mr. H S Upendra Kamath , who joined the Bank as Chairman and Managing Director on 01.04.2011.
Deposits of the Bank increased by 18.27% Y-o-Y, at ` 73,248 Crore and Advances increased to ` 49,222 Crore registering a growth of 17.37% . While the Bank could maintain the average yield on advances at around 10.25%, through concerted efforts, the cost of deposits was reduced to 5.86% from 6.21% in the previous year. With the result, NII has increased significantly by 34.35% ie, from ` 1449.07 cr to ` 1946.78 cr. NIM has also improved during the year to 3.04% from 2.54%, a year ago.
Bank's net profit of Rs.523.83 Crore was arrived at after reckoning additional provision for employee benefits due to the second pension option and increase in gratuity ceiling, to the tune of ` 301 Crore and provision for non performing advances to the tune of ` 413 Crore. Return on Assets for the year worked out to 0.72% while return on equity was at 20.44%.
Capital to Risk Weighted Assets ratio (CRAR) of the Bank under Basel II stood comfortably at 13.88% ( Tier I 9.88% and Tier II 4%) against the RBI requirement of 9%. Gross NPA and Net NPA Ratios stood at 2.56% and 1.52% respectively.
For the stand alone Q4, Net Interest Income increased to ` 478.35 crore, from ` 388.69 crore and NIM improved from 2.73% to 2.82%, after regrouping of quarter wise figures.
BUSINESS & SUPPORT SERVICES
SB deposit portfolio of the Bank has shown considerable growth from ` 10721 crores as of March 2010 to Rs.13330 crores as of March 2011, up by 24.33%. Current Deposits have also shown an increase of 14.19%. Overall CASA registered a growth of 21.32% with increase by ` 3252 crores. The CASA share was 25.25% of total deposits.
MSME advances of the Bank stood at ` 6768 crore registering a growth of 24.50% . Similarly Jewel Loan and Education loan portfolio of the Bank have posted an Y-o-Y growth of 58% and 13%, at ` 902 croe and ` 603 crore , respectively. Advances to weaker sections constituted 9.08% of Adjusted Net Bank Credit (ANBC), while loans to women customers saw a 19% growth accounting for 6.64% of ANBC as against the 5% norm.
Developments of significance during the year:
• 42 branches and 110 ATMs opened during the year taking the branch and ATM netwrk to 1200 and 545 respectively.
• Entered into Corporate Agency arrangement with LIC of India for distribution of Life Insurance products
• Introduced V-Platinum Current Account, a special scheme with sweep facility and host of other features.
• Introduced Online Share Trading portal
• Introduced " X press Money " and " Money Gram" remittance facilities in tie up with UAE Exchange and Thomas Cook
• Remit2India – Online remittance facility from 23 countries in tie up with Times of Money.
• Introduced and expanded Jewel Loan Shopee to more centres.
• Widened the ATM-cum-Debit card base to over 15 lakh cards
• V- Gen Uth SB and Unnati –RD accounts, targeting the Generation Next segment has increased to over 6.50 lakh
• Backed with IT capabilities and CBS advantage, the number of SMS alert users increased to 7 lakh , Net Banking customers to 74000 and Mobile Banking clients to 24000
• Actively pursued Financial Inclusion Plan covering 113 villages , issuing around 87000 Biometric Smart Cards
• Revamped Retail Asset Centralized Processing Cells for improvement of retail credit both in terms of quantum and quality
• Introduced V-Secured OD Scheme and fine tuned V-Home Loan, Jewel Loan and V- Rent retail credit schemes to make them more customer friendly
GUIDANCE - MARCH 2011
• Bank aims to reach a business level of Rs.150000 crore, with a y-o-y growth of about 22%
• Increasing CASA share to 30% in the next two years.
• Increasing the branch as well ATM network by another 100 each during 2011-12.
• Targeting a growth of 20% under retail credit and 30% in MSME advances.
• Bringing all the retail credit products under centralised processing fold by strengthening the existing Retail Asset Centralised Processing Cell ( RACPC) setup and introducing Centralised processing for MSME loans also, in order to reduce the turnaround time in sanctioning and also to boost credit flow to these segments.
• Business portfolio is envisaged to be further broad based with more focus on retail and fees based segments. Efforts will also be on to reduce high cost liabilities and low yielding assets.
• To contain Gross NPA% at below 2% and Net NPA% at below 1%, by focusing on recovery and quality of assets in a big way.
HIGHLIGHTS FOR FULL FINANCIAL YEAR
Business increased to ` 122470 cr, up by 18%
Deposits up by 18.27% to ` 73,248 Crore
Advances up by 17.37% to ` Rs. 49,222 Crore
Net Interest Income up 34.35%
Net Interest Margin at 3.04% Vs 2.54% last year
Net Profit up at Rs.524 Crore
Capital Adequacy at 13.88% vs. 12.50%, at March 2010
HIGHLIGHTS FOR Q4
Net Interest Income increased by 23.06%
NIM improved from 2.73% to 2.82%
Interest spread improved to 2.63 vis-à-vis 1.75%
Yield on advances is 10.48% against 10.26%
