Spurred by growth of interest income and control over expenditure on interest, Vijaya Bank successfully achieved a turnaround, posting a net profit of Rs 143.38 crore in the first quarter of 2009-10 compared to a net loss of Rs 76.64 crore in the same period last year.
“Our Q1 core earnings have been very impressive, especially in the light of somewhat slackened business growth. Our Net Interest Income continued to feature progressive improvement sequentially as well as on Q-o-Q basis, leading to a robust growth in Operating Profit”, Bank Chairman and Managing Director Albert Tauro told a press meet, releasing highlights of the Q1 performance here.
Driven by 53.75 per growth in Net Interest Income, operating profit for Q1 was Rs 209.77 crore, compared to Rs 154.84 crore for the corresponding quarter last year, he said.
Net Profit of Rs 143.38 crore was arrived at after reckoning for provision for wage arrears of Rs 65 crore, superannuation benefits of Rs 44.38 crore, provision for taxes of Rs 102.75 crore and non-performing advances to the tune of Rs 104.60 crore, he said.
There was write back of provision under investments of Rs 158.98 crore, mainly due to efficient management of investment portfolio, he noted, adding that return on assets for the quarter worked out to 0.93 per cent.