Vijaya Bank has reported 57.5 per cent increase in net profit at Rs 254.69 crore for the June quarter ended June 30, from Rs 161.66 crore in the corresponding period of the previous fiscal. The net profit gains were owing to healthy growth in retail income aided by a marginal fall in bad loan proportion, the bank said.
The public sector bank had registered net profit of Rs 161.66 crore in the corresponding April-June quarter of 2016-17 fiscal.
While the bank's exposure of Rs 680 crore to Videocon Industries Ltd contributed substantially to pressures on the non-performing asset front, the higher provisioning did not affect the bottomline too badly.
The bank's net NPAs or bad loans were trimmed to 5.24 per cent as a percentage of net loans by June 30 from 5.42 per cent earlier. However, on a sequential basis, the net non-performing assets increased from the quarter ended March 31, 2017.
In absolute terms, gross NPAs were Rs 6,812.21 crore as on June 30, 2017 as against Rs 6,589.23 crore a year ago.
Net interest income, or the core income of the bank grew by 20.6 percent to Rs 944 crore, on a yearly basis.
Total income rose to Rs 3,510.11 crore for the quarter ended June from Rs 3,295.05 crore a year ago, the bank said.
Gross non-performing assets (NPAs) of the bank fell slightly to 7.30 per cent of gross advances as on June 30, 2017 from 7.31 per cent a year ago. Net NPA value was Rs 4,784.26 crore compared with Rs 4,792.55 crore a year ago.
However, the bank made a higher provisioning and contingencies at Rs 423.20 crore for the quarter under review from Rs 267.82 crore a year ago. Of this, provisions for NPAs were of the order of Rs 410.99 crore, up from Rs 253 crore a year ago.
On the 12 stressed accounts chosen by the Reserve Bank of India last month under the insolvency and bankruptcy law, Vijaya Bank's total exposure is Rs 12,800 crore, Managing Director and Chief Executive Officer Kishore Sansi told Bloomberg on Saturday.
The bank said as per the Reserve Bank's directives on insolvency process, Vijaya Bank is required to provide an estimated amount of Rs 132 crore in respect of NPA accounts covered under Insolvency and Bankruptcy Code (IBC) effective from July 1, 2017.
Shareholders of the bank approved the raising of Rs 1,000 crore by way of equity sales during the annual general meeting held on June 23, the bank said in an exchange filing. The route to be taken for this will be decided by the board later.
