INSUBCONTINENT EXCLUSIVE:
Mumbai: Sate-run Vijaya Bank said June quarter earnings fell 41 percent due to provisions for bad loans, but the only PSU bank that paid out
dividend last fiscal has projected a 20 percent credit growth, enthusing investors.
Shares rose 4% as it turned out to be the first state
run bank to report lowering of bad loans in many quarters and improved the cushion against loan losses
144 crores, from Rs 254 crore a year ago
Narayanan, CEO of the bank told ET
the difference between what it paid for funds and what it earned on lending, rose 28% to Rs 1,207 crore while net interest margin, a measure
of profitability, was at 3.12%.
State-run banks are reeling under heavy bad loans and reporting losses due to heavy provisioning
But Vijaya is among better performers with it managing risks better and lesser project loans unlike a State Bank of India or a Punjab
National Bank.
The Provision Coverage Ratio - money that banks set aside if they fail to recover the loan- rose to 61% from 58%
Provisions for bad loans rose to Rs 546 crore, from Rs 410 crore a year ago.
Advances rose 31% to Rs 1.22 lakh crores while deposits rose
19% to Rs 1.57 lakh crores
The total bad loans was at 6.1% of total, down from 6.3% and post provisions it fell to 4.1% against 4.3% in March 2018
and additional Tier I capital to the extent of Rs 3000 crore
