 |
| Q1 results of Vijaya Bank |
HIGHLIGHTS
The Bank clocked total business of Rs.127000 crore
Interest income reached all time high of Rs.1785 crore
Operating profit improved to Rs.326 crore
Deposits increased by 21%
Advances increased by 22%
Yield on advances improved to 11.31%
With Deposits of Rs.75877 crore and advances of Rs.51130 crore, business mix of Vijaya Bank reached Rs.127007 crore as on 30.06.2011. With focus on retail, NPA management and improving fee based income, the Bank envisages to post decent all round growth in the days to come, said Mr. H S Upendra Kamath, Chairman and Managing Director of the Bank.
Interest income of the Bank for the 1st quarter of 2011-12 was Rs.1784.96 crores against Rs.1349.53 crore for the corresponding period of the previous year. Operating profit of the Bank improved to Rs.325.51 crores against Rs.314.26 crores for the corresponding period of the previous year and Rs.110.00 crores for the immediately preceding quarter. During June, 2011 quarter, the Bank made provision towards NPA of Rs.154.28 crores of which Rs.108.37 crores is due to the increase in the minimum provisioning requirement by Reserve Bank of India. Further, due to firming up of interest rates, the Bank had to provide Rs.76.60 crore towards MTM losses in respect of investments. In spite of this, the Bank posted net profit of Rs.72.22 crores for the quarter. Yield on advances improved to 11.31% from 9.84% ie., by 147 bps.
Capital to Risk Weighted Assets Ratio (CRAR) stood at 13.04% (Basel-II) with Tier I ratio at 9.36% and Tier II ratio at 3.68%. CRAR of the Bank is well above the minimum stipulated level of 9% by Reserve Bank of India.
Total advances of the Bank as on 30.06.2011 increased by 22% over the position as on 30.06.2010 and 3.80% over the position as on 31.03.2011. Advances of the Bank include Priority Sector advances of Rs.15071 crores which recorded an increase of 8.05% (Y-o-Y). While agriculture advances improved to Rs.5523 crore registering a growth of 10.17%, MSME advances increased to Rs.7669 crores registering considerable growth of 46%. Advances to weaker section constitute 7.69% of ANBC and loan to Women constitute 5.73%. Education loans extended by the Bank reached Rs.607 crores registering a growth of 11.17%.
Major developments during the quarter:
• Total ATMs installed by the Bank reached 552.
• V-Insta debit card has been launched.
• E-term deposit launched.
• Expanded the ATM-cum-Debit card base to over 16 lakh cards
• Corporate Agency arrangement with LIC of India for distribution of Life Insurance products
• Revamped Retail Asset Centralized Processing Cells along with opening of SME cells for improvement of retail credit both in terms of quantum and quality
GUIDANCE - MARCH 2012
1. Bank aims to reach a business level of Rs.153000 crore, with a y-o-y growth of about 25%.
2. To sustain the tempo of credit growth with focus on retail.
3. Revamped RACPCs and newly opened SME cells to give added thrust to retail asset growth.
4. Increased focus on improving the CD ratio further with emphasis on quality business.
5. Continued thrust on maintaining the yield on advances by encouraging retail lending, credit to SSI/SME segment, agriculture and infrastructure sectors.
6. Focus on fee based income.
7. Net NPA to be contained within 1%.
8. Special campaign for adding retail clients both on assets and liabilities side.
9. Emphasis on mobilizing low cost deposits / core term deposits to improve share of low cost deposit and to reduce the dependence on bulk deposits.
10. To restrict addition to Non Performing Advances and continuous monitoring of HC-2 and Non Performing Advances to achieve maximum recovery as well as up gradation.
11. Control on operating expenses and elimination of avoidable expenses.
12. Better management of cash holdings and bank balances.
13. Focus on increasing treasury profits from Forex and Domestic segments and through derivatives trading.
14. Improving productivity through faster technology penetration, redeployment of staff to new branches, marketing new products and services to the expectations of the customer requirements.
15. Efforts towards Brand Building exercise
