Vijaya Bank

Vijaya Bank has posted a good set of numbers for Q1FY18, especially under the current circumstances. There was an improvement in profitability but asset quality shows stress.

Net profit for the quarter rose 57% (YoY) at Rs.255 crore while total income rose over 6.5% to Rs.3510 crore.

In terms of asset quality, Gross NPA saw a rise from 6.59% to 7.3% (QoQ) and Net NPA rose from 4.36% to 5.24%. YoY though, there has been a marginal drop.

Provisioning has risen from Rs.268 crore to Rs.423 crore out of which Rs,411 crore is towards NPAs. Provision coverage was at 56.01%. As per RBI rules, effective 1st July, Vijaya Bank needs to provide for Rs.132 for NPA accounts under Insolvency and Bankruptcy Code (IBC). But in Q1FY18 itself it provided Rs.40 crore for this amount and balance, it expects to provide equally over three remaining quarters of FY18.

The Bank, in current fiscal plans to add 100 new branches.