Bengaluru-based public sector lender Vijaya Bank today announced 29% decline in net profit at Rs 97 crore for the fourth quarter ended March 2015 compared to Rs 136 crore in the corresponding quarter last year. The total income for the quarter went up 12.4% to Rs 3,406 crore compared to Rs 3,029 crore in the same period last year.
The drop in net profit is on account of higher provisions during the quarter, which went up by 11% to Rs 306 crore as against Rs 276 crore in the year ago quarter. The Bank also made a provision of Rs 208 crore towards increase in salaries arising out of 10th bipartite settlement with IBA but no provision has been made towards consequential increase in gratuity, pension and compensated absence liability.
"In the absence of the details of the increase under various components of salaries which is under discussion / determination, the amount of additional provision that may be required is indeterminate. The salary increase considered in actuarial valuation is sufficient to cover this increase," Kishore Sansi, Managing Director & CEO said in a filing to BSE.
The operating profit of the Bank also declined by 6.3% to Rs 312 crore from Rs 333 crore in the year ago quarter. The net interest income, though, went up by 18.2% to Rs 623 crore as against Rs 527 crore a year ago.
Vijaya Bank's percentage of gross non-performing assets during the quarter increased to 2.78% from 2.41% a year ago and the net non-performing assets was 1.92% from 1.55% a year ago.
During the March quarter, return on assets dipped to 0.28% from 0.42% a year ago. The capital adequacy ratio under Basel-III during the quarter stood at 11.43% from 10.56%.
The Bank's shares ended the day at Rs 46 per share, a drop of 2.22% over the previous close on BSE.
No comments:
Post a Comment