Vijaya Bank Net Profit Plunges By 39% To Rs 135 crore

Vijaya Bank’s Net Interest Income (NII) remains muted in Q4FY14 to Rs 527 crore against Rs 517.2 in Q4FY14. This was mainly due to sharp increase in interest expended of the bank, which went up by 22.6% yoy to Rs 2250.5 crore in the said quarter. However, operating profit fell by 14% to Rs 333 crore in Q4FY14 from Rs 388 crore in same period last year, on account of decrease in other income of the bank by 31%.

On assets quality front the bank has recorded marginal improvement, as the gross Non-Performing Assets (NPAs) came down to 2.14% of total lending in Q4FY14 from 2.67% in previous quarter period same fiscal year. Further its net NPAs came improved to 1.55% in the said quarter against 1.57% in Q3FY14. But provisioning & contingencies of the bank shoot up by 73.5% QoQ to Rs 276.6 in Q4FY14 against Rs 159.4 crore in Q3FY14. 

Coming to the whole year performance, NII of the bank registered a decent yearly growth of 11% to Rs 2083 crore in FY’14 against Rs 1878 crore in FY’13. However operating profit for the whole year dropped by 1.6% to Rs 1103 crore. And net profit of the bank fell by 28.8% to Rs 417 crore in FY’14 against Rs 585 crore during last year on account of higher provisioning by the bank during the year.

At CMP of Rs 41.25 per share, the stock is trading at 0.47x time of its book value.