According to a recent press report Vijaya Bank’s net profits went down 58.5 per cent to Rs 54.23 crore, compared with Rs 130.92 crore in the corresponding quarter of the 2009-10 fiscal due to increase in the employee costs compared to the fourth quarter of the last fiscal.
Mr H.S. Upendra Kamath, Chairman and Managing Director, Vijaya Bank, said that the employee costs of the bank had gone up to Rs 387.08 crore from Rs 163.61 crore due to provisioning for second pension option and enhancement in gratuity limits for public sector banks. He added saying that the bank had provided about Rs 150 crore as one-time provision towards the same in respect of retired employees.
The net interest income of the bank has gone up by 23 per cent to Rs 478.35 crore from Rs 388.69 crore. Vijaya Bank’s net profit for the 2010-11 fiscal went up 3.26 per cent to Rs 523.82 crore, compared with Rs 507.29 crore recorded during 2009-10. Mr. Kamanth said that if the one-time expense of Rs 181 crore towards provisioning for retirees were to be added back notionally then the bank’s profits would have grown over 30 per cent at Rs 705 crore. The net interest income went up 34.35 per cent to Rs 1,946.78 crore from Rs 1,449.07 crore.The bank is planning to boost up its retail (Personal Loan, Home loan etc) and MSME segment operations.