Q4 losses, pulls down Vijaya Bank's margins
Bangalore, May 5 (UNI) A net loss of Rs 34.53 crore in the fourth quarter has pulled down the net profit of Public Sector Vijaya Bank to Rs.126.88 crore during Fiscal 2006, as against Rs 380.57 crore earned during the previous year.
Announcing the results for 2005-06, Bank Chairman Prakash P Mallya told newspersons that the loss during the quarter as against a net profit of Rs 155.92 crore during the last quarter of the fiscal 2005 was on account of higher provisioning requirements to the tune of Rs 100 crore for Non Performing Asets and Diminution in value of assets.
Stating that the total business of the bank during the year had touched Rs 44,771 crore as against Rs 40,301 crore during 2004-05, he said the Bank, celebrating its platinum jubilee this year, aimed at touching a business of Rs 60,000 crore during the year.
''This is possible'' he assured.
He informed that the Bank would increase its prime lending rate by 25 basis points at 11.25 per cent from May 10.
Mr Mallya said the operating profit for the year was Rs 718.23 crore as against Rs 799.809 crore the previous year. The lower profit was due to drop in net interest margin from 3.56 per cent to 3.20 per cent.
Additionally the staff cost had gone up by Rs 60 crore due to wage revision and profit on sale of invesTments remained at Rs 148.44 crore due to hardening of yield levels which restricted treasury activity, he added.
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