State-owned Vijaya Bank reported 34.1 per cent increase in net profit to Rs 154.55 crore in the second quarter of the current fiscal despite higher provisioning for bad loans.
The bank’s net profit in the July-September quarter of 2015-16 was Rs 115.29 crore.
Its total income rose to Rs 3,516.57 crore during the second quarter of 2016-17 as against Rs 3,202.89 crore from the same period a year ago, Vijaya Bank said in a regulatory filing.
Provisions for bad loans and contingencies were increased by the bank to Rs 389.82 crore for the quarter under review, 42.5 per cent higher than Rs 273.47 crore in the same period a year ago.
Asset quality of the bank slipped as gross non-performing assets (NPAs) or the bad loans rose to 7.07 per cent of the gross advances as of September 2016, as against 3.98 per cent a year earlier.
Likewise, net NPAs too increased to 5.10 per cent of the net advances, from 2.84 per cent.
Vijaya Bank stock jumped 8.93 per cent to Rs 43.9 a share on BSE.