Vijaya Bank recorded a net loss of Rs 76.64 crore for the first quarter ended June as against a net profit of Rs 111.35 crore reported in the corresponding period last fiscal.
The bank recorded a year-on-year growth of 32.94% in total business at Rs 85,714 crore, up from Rs 64,477 crore reported in the corresponding period last year. The operating profit stood at Rs 154.84 crore as against Rs 171.27 crore during the same period.
?Profits and profitability were influenced by adverse movement and volatility in the bond market. As a result, and in keeping with the industry trend, the bank had diminution in its investment portfolio to the tune of Rs 190 crore, and had to provide for the same,? a bank official said.
Vijaya Bank CMD Prakash P Mallya called the net losses a ?notional loss, on account of provisions made.?
Total deposits climbed by 29.92% to Rs 51,631 crore in the first quarter from Rs 39,742 crore in the corresponding quarter of the previous fiscal. Net NPA ratio stood at 0.68% as on June 30, 2008 while capital adequacy ratio stood at 10.47% and was above the RBI stipulated norm of 9%.