BIZ-RESULTS-LD VIJAYABANK
- Country:
- India
State-owned Vijaya Bank Monday
reported 24.54 per cent fall in net profit at Rs 140 crore for
the quarter ended September 30, 2018, "due to provisioning."
The bank had registered a net profit of Rs 185.46
crore in the corresponding quarter last year.
Vijaya Bank MD and CEO R S Sankara Narayanan said,
"The fall in net profit is due to provisioning. Having 65 to
70 per cent provisioning is healthy for any private or public
sector."
"The bank is interested in quality or strength of its
balance sheet, not in showing higher profits and paying tax,
which is not viable proposal for any bank," Narayanan said.
Total income of the bank stood at Rs 3,931.36 crore
for the reported quarter, up 12.28 per cent from Rs 3,501.31
crore in the year-ago period, he said.
The bank's gross non performing assets (NPA) ratio
as on September 30, 2018 improved to 5.86 per cent against
7.06 per cent during the corresponding period last year,
Narayanan said.
Net NPA stood at 3.81 per cent as against 4.86 per
cent last year, he added.
To a question, Narayanan said the bank was in the
revival cycle as NPA numbers have been dropping down in last
five years.
"The NPAs used to be 14 to 15 per cent for the
industry. They have been dropping down in last five years and
it only suggests that the bank is in the revival cycle. I am
very confident the banking industry will do much better with
improvement in economy," he said.
The government on September 17 announced a merger of
Vijaya Bank, Dena Bank and Bank of Baroda, making the new
entity the country's third-largest lender.
Replying to a query on farm loan waiver announced by
Karnataka government, Narayanan said the bank would support
the government in the best possible way.
"We had meetings with Chief Minister H D Kumaraswamy
and his staff. We are waiting for further updates from the
government on the type of settlements," he said.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)