Vijaya Bank net up 9%

Written by Banking Bureau | Bangalore, Apr 26 | Updated: Apr 27 2008, 06:43am hrs
The state-run Vijaya Bank reported a lower than expected net profit at Rs 361.26 crore for the financial year ended March 2008 on account of higher provisions for depreciation in the value of investments. However the bank has recorded a growth of 9.03% in net profit.

The bank has provided a provision of Rs 272.12 crore during the quarter ended March 2008 due to marked to market diminution in the value of investments.

Bank suffered marked to market diminution in the value of investments amounting to Rs 272.12 crore during the fourth quarter due to adverse movement in bond yield and volatility in the equity market during the last fortnight of the quarter, said Prakash P Mallya, chairman and managing director of Vijaya Bank.

He said the bank had earlier predicted a net profit of Rs 425-450 crore for the fiscal. Net profit before incremental provision for MTM diminution in the value of investments is Rs 477.71 crore recording a growth of 44.18%.

During the fiscal 2007-08, he said the bank has increased its total business by 28.47% to Rs 79,971 crore. Total deposits of the bank increased by 27.52% to Rs 47,952 crore while gross advances surged by 29.93% to Rs 32,019 crore.

Gross NPA rationdeclined to 1.60% from 2.29% a year ago. Operating profit declined to Rs 660.86 crore from Rs 685.52 crore.

Mallya said the bank has set a target to touch Rs 1,00,000 crore in total business in the current fiscal. Mallya said that for the current fiscal the bank expects a net profit of Rs 500 crore.