Bengaluru: Vijaya Bank net dips 20 percent in Q2

Bengaluru, Nov 6 (IANS) State-run Vijaya Bank reported net profit of Rs.115 crore for second quarter of this fiscal as against Rs.144 crore in like period year ago, registering 20 percent decline annually.

In a regulatory filing to the Bombay Stock Exchange (BSE) on Friday, the city-based bank said operating profit for Q2, however, increased 30 percent to Rs.399 crore from Rs.306 crore last year.

“Higher provisioning for sub-standard and doubtful accounts has impacted our net profit in second quarter though we were profitable operationally,” Vijay Bank chief executive Kishore Sansi told reporters here later.

Provisioning and contingencies shot up 80 percent to Rs.274 crore in Q2 from Rs.152 crore year ago and 88 percent sequentially from Rs.146 crore in first quarter.

The bank’s total income remained flat at Rs.3,203 crore as against Rs.3,254 crore, posting 1.6 percent decline annually.

Gross non-performing assets (NPA) soared 55 percent to Rs.3,460 crore from Rs.2,239 crore year ago, while net NPAA increased 67 percent to Rs.2,442 crore from Rs.1,462 crore year ago.

As a result, gross NPA ratio increased to 3.98 percent from 2.85 percent year ago though net NPA ratio declined to 0.34 percent from 0.43 percent year ago.

Net interest income (NII), however, increased 19.7 percent to Rs.693 crore from Rs.579 crore year ago.

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