Q2 Highlights of Vijaya Bank
Total Business up by 29%
Net Profit up by 41%
Operating Profit Up by 15%
NII up 5.36%
Aggregate Business of Rs.132106 crore
Deposits at Rs.77802 Crore up by 24%
Gross Advances at Rs.54304 Crore up by 36%
Vijaya Bank crossed another milestone and clocked total business of Rs.132106 cr recording a growth of 28.92%. Net Profit improved by 41.05% to Rs.203.53 Crore for the 2nd quarter of the current financial year against Net Profit of Rs.144.30 crore for the comparative previous quarter. Bank’s operating profit for the 2nd quarter ended 30.09.2011 has grown to Rs.339.74 Crore, up by 14.84%,. “Concerted efforts for improving the core earnings and curtailing NPAs have paved the way and the Bank could post a decent all round improved performance”, said Mr. H S Upendra Kamath, Chairman and Managing Director of the Bank.
For the stand alone 2nd quarter, Yield on Advances improved to 11.82% against 10.20% for the corresponding previous quarter, up by 162 bps. Net Interest Income (NII) growth worked out to 5.36%. Net Interest Margin (NIM), key indicator of efficiency in funds allocation could be maintained at 2.72% in spite of the rising interest rate scenario. Strong growth in profits also boosted Bank’s Return on Assets from 0.81% to 0.95% over the same period. Similarly, return on networth also improved to 23.50% against 20.35% for the corresponding quarter of the previous year.
Operating profit for the first half was at Rs.665.25 Crore as against Rs.610.11 Crore for the corresponding period last year. Net profit for the first half of the current year is Rs.275.75 crores. Net profit for the current half year was arrived at after making necessary provisions including provision for NPA of Rs.213 Crore which includes the additional provision of Rs.109.22 Crore made for the half year due to revision in the minimum provisioning rates wef 1st April, 2011. Yield on advances improved to 11.54% against 10.04% for the first half of the previous year.
Aggregate business of the Bank stood at Rs.132106 Crore, comprising Rs.77802 Crore of deposits and Rs.54304 Crore of advances. CD ratio improved to 69.80 from 63.52. Priority sector advances of the Bank aggregated to Rs.16019 Crore, posting a y-o-y growth of 10.3%. Within priority sector advances, agricultural loans were of the order of Rs.5770 Crore up by 25%. Loans to MSME sector clocked 18.80% growth to reach Rs.7453 Crore. Educational loan portfolio of the Bank was at Rs.645 Crore up by 9% while loans to weaker sections stood at Rs.3831 Crore up by 5.50%. Loans to women beneficiaries improved to Rs.2885 Crore from Rs.2553 Crore up by 13%.
As regards asset quality, Gross NPA ratio and Net NPA ratio of the Bank stood at 2.54% and 1.42% respectively. Capital to Risk Weighted Assets ratio (CRAR – Basel II) stood at 12.63% as at September 30, 2011.
MAJOR DEVELOPMENTS / INITIATIVES
• 50 new branches including 4 micro finance branches have been opened taking the total number of branches to 1250.
• 86 new ATMs have been installed and total number of ATMs reached 643
• Housing loan melas at all major centers conducted.
• E-deposit product launched
• Opened FIRC(Financial Inclusion Resource Center) and FLCC(Financial Literacy and Credit Counseling Center) in Mandya, Haveri and Dharwar.
• Financial inclusion branches were opened at Dakshin Kannada and Chitradurga Districts.
• Under corporate social responsibility, 8 villages were adopted, 8 rural health centers were opened, 8 rural bus shelters were provided, 8 rural girl students were adopted and computer training center for the rural under privileged started.
GUIDANCE MARCH 2012
1. Bank aims to reach a business level of Rs.1,44,000 crore,.
2. To sustain the tempo of credit growth with focus on retail.
3. Revamped RACPCs and newly opened SME cells started showing results which shall improve the retail assets base of the Bank.
4. Continued efforts for improving CD ratio further.
5. Increased focus on fee based income.
6. Thrust on maintaining the yield on advances and improving NIM further to 3% by encouraging retail lending, credit to SSI/SME segment, agriculture and infrastructure sectors.
7. Continue to exercise vigil on Non Performing Advances and arrest fresh slippages to bring down the net NPA level to below 1%.
8. Thrust to improve return on assets to more than 1%.
9. Focus on increasing treasury profits from Forex and Domestic segments and through derivatives trading.
10. New branches to be opened, new ATMs to be established
