Vijaya Bank incurs a net loss of Rs 76.64 Cr

Subscribe to Oneindia News

Bangalore, July 26 (UNI) Public Sector Vijaya Bank has recorded a net loss of Rs 76.64 crore for the quarter ended June 30.

Announcing this to newsmen here, Bank's Chairman and Managing Director Prakash P Mallya said though the bank had done exceedingly well under its core business, the overall profits and profitability were influenced by adverse movement and volatility in the bond market. As a result, keeping with the industry trend, the bank's investment portfolio diminished to by Rs 190 crore and had to provide for the same. But for this additional provision, he said the Bank's net profit would have been Rs 114 crore.

He hoped that the markets would turn around with moderation in inflation and benchmark rates as a result of which subsequent quarters might feature improved financials.

He said the operating profit for the quarter was Rs 154,84 crore as against Rs 171.27 crore for the first quarter during last year.

Giving details, he said the total business increased by 32.94 per cent from Rs 64477 crore to Rs 85714 crore while the total deposits increased by 29.92 per cent from Rs 39742 crore to Rs 51631 crore. The credit-deposit ratio also increased from 62.24 per cent to 66.01 per cent, he daaed.

Answering a question he said the net Non Performing Asset(NPA) ratio was 0.68 per cent as on June 30, 2008.

Giving details about new business initiatives, he said the total business was expected to cross Rs 1,00,000 crore and the credit-deposit ratio would also cross 70 per cent. All the branches would be brought under the Core Banking Solution by March next, he added.

UNI SR HVB MDG 1510

Please Wait while comments are loading...