For the stand alone 4th quarter, Yield on Advances improved to 11.93% against 10.48% for the corresponding previous quarter, up by 145 bps aided by increase in the interest/discount on advances by 40%. CD ratio has improved to 70.64 against 67.20. Net Interest Income (NII) has grown up by 3%. Return on average assets for the quarter ended March, 2012 is at 0.78% against 0.28% for the corresponding quarter of the previous year. Return on net worth improved to 19.31% against 6.87%.
Operating profit for the year 2011-12 was at Rs.1230.47 Crore as against Rs.1046.68 Crore for the corresponding period last year up by 17.56%. Net profit for the current year ended March, 2012 is Rs.581 crore up by 10.91%. Net profit for the year was arrived at after making necessary provisions including provision for NPA of Rs.414 Crore, provision for standard assets of Rs.34.81 cr and provision for standard restructured accounts towards economic loss of Rs.39.58 cores. Yield on advances for the year 2011-12 improved to 11.73% against 10.25% for the previous year.
Aggregate business of the Bank stood at Rs.141727 Crore, comprising Rs.83056 Crore of deposits and Rs.58671 Crore of advances. Priority sector advances of the Bank aggregated to Rs.17667 Crore, posting a y-o-y growth of 20.42%. Within priority sector advances, agricultural loans were of the order of Rs.6558 Crore up by 31.98%. Loans to MSE and MSME sector clocked 28.10% and 22.43% growth to reach Rs.7272 Crore and Rs.8286 crore level respectively. Educational loan portfolio of the Bank was at Rs.643 Crore up by 6.63% while loans to weaker sections stood at Rs.4281 Crore up by 12.42%. Loans to women beneficiaries improved to Rs.3593 Crore from Rs.2784 Crore up by 29.06%.
As regards asset quality, Gross NPA ratio and Net NPA ratio of the Bank stood at 2.93% and 1.72% respectively. Capital to Risk Weighted Assets Ratio (CRAR – Basel II) stood at 13.06% as at March 31, 2012.
MAJOR DEVELOPMENTS / INITIATIVES
• 100 new branches have been opened taking the total number of branches to 1300.
• Total number of ATMs reached 750 after opening 205 new ATMs
• Housing loan melas at all major centers conducted.
• E-deposit product launched
• Completed Financial Inclusion in all the 407 villages with above 2000 population allotted to the Bank
• Bank has been awarded first prize for highest share of SHG business to overall business as well as for Highest Average JLG loan for the year 2010-11 in Karnataka state by NABARD.
• Bank has won 2nd Prize for Best Performance in Pune Division and 3rd prize in Maharashtra State among commercial banks operating in Maharashtra for SHG Bank Linkage for the year 2010-11 from NABARD
GUIDANCE MARCH 2013
1. Bank aims to reach a business level of Rs.165000 crore.
2. To increase the Branch net work further by opening at least 100 new branches during 2012-13 and to expand the ATM network further.
3. Opening of Gennext and HNI branches to suit the requirements of the modern citizens/elite customers.
4. To continue the momentum in credit growth with focus on retail/MSME.
5. Sustained efforts for improving CD ratio further.
6. Increased focus on fee based income.
7. To improve the CASA base.
8. Thrust on maintaining the yield on advances and improving NIM by encouraging retail lending, credit to MSME segment, agriculture and infrastructure sectors.
9. Close monitoring of the advance portfolio of the Bank for arresting fresh delinquency of borrowal accounts and upgradation of the NPA accounts to reduce the NPA ratio.
10. Concerted efforts for improving recoveries in NPA accounts.
11. Focus on increasing treasury profits from Forex and Domestic segments
Sourced From: VIJAYA BANK