The Hindu : Vijaya Bank brings down NPAs

Online edition of India's National Newspaper
Thursday, May 01, 2003

Business

Business

Vijaya Bank brings down NPAs

By Our Special Correspondent

Continuing its efforts in cost-effectiveness, Vijaya Bank has registered a sizable reduction in net non-performing assets as well as cost of deposits. The percentage of net NPAs declined from 6.02 per cent to 2.80 per cent.

Announcing the results at a press conference, the bank Chairman and Managing Director, M. S. Kapur, said that the NPAs had come down from Rs. 373.25 crores to Rs. 205.81 crores. The bank has registered a gross profit of Rs. 432.36 crores during the year ended March 31, 2003 against Rs. 252.51 crores in the previous year, a 71.2 per cent increase. The net profit increased from Rs. 130.90 crores to Rs. 196.56 crores. The bank has announced a dividend of 12 per cent.

The bank's total business stood at Rs. 25,204 crores, recording a rise of 19.5 per cent. Total deposits grew by 15.9 per cent from Rs. 14,681 crores to Rs. 17,020 crores and the cost of deposits declined from 7.51 per cent to 6.58 per cent. The bank announced a reduction in its prime lending rate by 50 basis points from 12 per cent to 11.5 per cent with immediate effect.

Bharat Overseas Bank

<167,7.3p,1>Bharat Overseas Bank plans to enter into bancassurance relationship with National Insurance Company for distributing the latter's non-life insurance products, according to G. Krishna Murthy, Chairman and CEO, of the bank.

Addressing presspersons here, Mr. Krishna Murthy said the bank, as part of its new business initiatives, was planning to distribute products of mutual funds to raise its fee-based income besides entering into credit card business in the current fiscal. The ATM facility would be added in 10 more centres during the year. Total deposits grew by 18 per cent to Rs. 2,149.09 crores from Rs. 1,823.26 crores and gross advances by 27 per cent to Rs. 1,193.08 crores from Rs. 939.56 crores.

The bank achieved a net profit of Rs. 28.52 crores in the 12 months ended March 31, 2003 against Rs. 22.75 crores after making provisions and contingencies of Rs. 20.79 crores (Rs. 30.59 crores). The operating profit was lower at Rs. 49.31 crores against Rs. 53.34 crores. The operating profit sans profit on sale of investment increased by Rs. 10 crores during the year. He said the lower operating profit was offset by an increase of 23 per cent in net interest income which stood at Rs. 61 crores against Rs. 49 crores.

The bank had announced a dividend of 16 per cent for 2002-03. The capital adequacy ratio stood at 13.87 per cent as on March 31, 2003.

South Indian Bank

<167,4p,1>South Indian Bank has recommended a dividend of 25 per cent for the year ended March 31, 2003. The gross profit has risen by 25.2 per cent to Rs. 216.47 crores from Rs. 172.90 crores and the net profit to Rs. 72.33 crores from Rs. 62.41 crores. Non-interest income has increased to Rs. 182.39 crores from Rs. 138.54 crores.

Deposits grew to Rs. 6,861 crores from Rs. 5,920 crores and advances to Rs. 3,613 crores from Rs. 3,231 crores.

The capital adequacy ratio was 10.75 per cent. The profit had been arrived at after making provisions to the extent of Rs. 86.50 crores against non-performing assets.

The NPA to net advances has declined to 5.98 per cent from 6.89 per cent.

Printer friendly page
Send this article to Friends by E-Mail

Business