Vijaya Bank Q1FY15 Net Profit Up 22% Y-o-Y

State owned Vijaya Bank posted a net profit of Rs 161.46 crore in the quarter ended June 2014 as compared to Rs 132.46 crore in the corresponding quarter of previous year, registering a growth of 22%. The growth in net profit was aided by lower operating expenses by the bank in the current quarter which stood at Rs 411.63 crore in Q1FY15 as against Rs 417.35 crore in Q1FY14. What also helped the bank to post healthy profit growth is the tax expenses which came down substantially to Rs 35.07 crore in the current quarter from Rs 108.88 crore in the same quarter last year.

Net interest income (NII), the difference between interest earned and interest expended, went up by 11.36% in the current quarter to Rs 535.48 crore. However, the other income of the bank slipped by 37.7% to Rs 166.20 crore in Q1FY15, while the provisions and contingencies rose by 5% to Rs 93.52 crore on year-on-year basis.
The asset quality of the bank weakened sequentially. Gross non-performing assets (NPA) ratio stood at 2.68% in the quarter ended June 2014 against 2.41% in March 2014, while net NPA ratio stood at 1.77% in the current quarter against 1.55% in the preceding quarter.

The shares of Vijaya Bank are currently trading at Rs 49.35, which is 0.72x of its book value.