Vijaya Bank second Quarter Net Profit Down 20 per cent

Company’s net profit in the July-September quarter a year ago stood at Rs 608.33 crore, the company said in a filing to stock exchanges.

State-run Bank of India today posted a net loss of Rs 1,126.24 crore for the second quarter ending September 30, mainly due to high provisioning for bad loans.

Direct costs also increased exponentially to Rs 341.2 crore (Rs 3.41 billion), representing a staggering 135.1 per cent increase from Rs 144.8 crore (Rs 1.45 billion) in the year-ago period.

Deposits grew nearly 11% from a year earlier – close to the industry trend – to Rs 16.34 lakh crore, in a quarter when it had lowered deposit rates.

The city-headquartered lender’s gross non-performing assets more than doubled to 7.55 percent of total loans from 3.54 percent in the same period last fiscal, while net NPAs almost doubled to 4.31 percent from 2.32 percent a year ago.

The banks total business grew by 14.2% to Rs 2,968.94 billion during the second quarter as against Rs 2,600.12 billion during the corresponding quarter past year.

The Group has posted consolidated net profit after taxes, minority interest and share of profit of associates of Rs. 577.90 million for the quarter ended September 30, 2015 where as the same was at Rs. 618.80 million for the quarter ended September 30, 2014. Net interest margins increased to 2.06 per cent from 1.93 per cent, while the core net interest income rose 15 per cent to Rs 1,612 crore from Rs 1,406 crore.

Gross credit stood at Rs 1,51,950 crore.

The stock hit an intraday low of Rs 127, down 4.83 per cent but recovered as the session progressed and rose 4 per cent. Oil India shares ended 0.69 per cent down at Rs 398.70 on the BSE.