Vijaya Bank net profit rises by 33.9 per cent to Rs 70.73 crore

Our Bureau

Bangalore, June 6: VIJAYA Bank has recorded a 33.90 per cent growth in net profit to Rs 70.73 crore in 2000-01 up from Rs 52.84 crore in the previous fiscal. This is an all time high for the bank.

Vijaya Bank chairman and managing director S Gopalakrishnan said the net profit has been achieved after absorbing Rs 60.08 crore towards expenditure on VRS. “But for this extraordinary expenditure, the bank’s net would have more than doubled from the last year’s level,” he said.

Further, the bank’s net NPA is down from 6.65 per cent in 1999-2000 to 6.23 per cent in 2000-01. It has targeted a less than 4 per cent net NPA during the next fiscal. Also, the percentage of gross NPA to gross advances declined from 11.5 per cent in the last fiscal to 10.0 per cent during 2000-01. Total deposits of the bank increased from Rs 11,593 crore to Rs 12,632 crore during the period under consideration. Average aggregate deposits recorded an increase of 13.7 per cent and total credit increased by 15.4 per cent or Rs 761 crore to Rs 5,720 crore during the period.

The bank has targeted a Rs 50-crore rise in operating profit during 2001-02. The same stood at Rs 159.77 crore in 1999-00 and rose 54.7 per cent to Rs 247.23 crore in 2000-01. Net profit as a percentage of working funds improved from 0.41 per cent to 0.50 per cent during the same period.

Mr Gopalakrishnan indicated that the bank’s insurance venture is now all set to take off. The RBI had sought audited balance sheet, approved on Wednesday by the board, and it would be sent to the apex bank on Thursday clearing the decks for starting the venture, reports PTI.

Net profit, as percentage of working funds, improved from 0.41 per cent to 0.50 per cent and operating profit from 1.25 per cent to 1.73 per cent, he said.

“Net profit was achieved after absorbing Rs 60.08 crore towards expenditure on VRS. But for this extraordinary expenditure, the bank’s net profit would have more than doubled from the last year’s level,” Mr Gopalakrishnan said.