Thursday, January 26, 2012

VIJAYA BANK - QTRLY RESULTS - Q3 FY 2012 - Q/E DEC,2011 - NPT DOWN 18% YoY. HIGHER NPAs IN Q3 - BANK CONFIDENT FOR FUTURE.


Vijaya Bank

NSE Symbol        VIJAYABANK

Vijaya Bank has declared results for 3rd Quarter ending  Dec,2011.

Interest on Advances  stands at Rs.1569.88 cr – up by  4.48% from Q2 FY 12, the previous qtr and  up by 51.41% from Q3 FY 11.

Income on Investment stands at  Rs.476.02 cr – up by  3.86% from Q2 FY 12 and up by  11.14% from Q3 FY 11.

Interest Earned stands at Rs.2058.26 Cr – up by  3.29% from Q2 FY 12 and up by         38.84% from Q3 FY 11.

Other Income stands at Rs.115.66 Cr – up by 9.45% from Q2 FY 12; and up by  13.51% from Q3 FY 11.

Total Income stands at Rs.2173.92 cr – up by  3.6% from Q2 FY 12; and up by 37.21% from Q3 FY 11.

Interest Expended stands at Rs.1583.66 cr – up by  7.05% from Q2 FY 12; and up by 67.37% from Q3 FY 11.

NET INTT INCOME stands at Rs.474.60 cr – down by  -7.55% from Q2 FY 12 and  down by  -11.51% from Q3 FY 11.  While total Income has gone up reasonably well, Net Interest Income has not gone up either in previous Qtr or in corresponding qtr, but has registered a downfall. This is attributed to interest expenses going up steeply in the quarter and also reversals of some interest receivables following restructuring of two major accounts that had turned into NPAs..

Total Expdr (excl.prov.)stands at Rs.1872.18 cr – up by 6.46% from Q2 FY 12; and up by  48.85% from Q3 FY 11.

Operating Profit  stands at Rs.301.74 Cr – down by  -11.2% from Q2 FY 12; and down by  -7.61% from Q3 FY 11.

Provisions  stands at Rs.167.24 cr – up by a huge 74.44% from Q2 FY 12; and up by  45.68% from Q3 FY 11.

Profit before tax has also come down to Rs.134.50 cr – down by  -44.9% from Q2 FY 12; and down by  -36.5% from Q3 FY 11.

Net Profit, after tax stands at Rs.124.27 cr – down by  -38.9^ from Q2 FY 12; and down by -18.14% from Q3 FY 11.

Capital Adequacy Ratio stands reasonably at 10.94 though down from 11.27 of Q2 FY 12; and  12.85 of Q3 FY 11.

% of Gross/Net NPA has increased to  1.81% in  Q3 Fy 12 against 1.42% in Q2 FY 12; and  1.38% in Q3 FY 11.

Return on Assets has fallen to 0.55 from  0.95 In Q2 FY 12 and  0.86 in Q3 FY 11.

Basic EPS stands at Rs.2.63 in Q3 FY 11; Rs.4.31 in Q2 FY 12 and  Rs.1.53 in Q3 FY 11.   The annual EPS on this Basis will come to about Rs.11.1

Current Market Price stands at Rs.55.70. while the 52 week high price is Rs.95.35 and the 52 week low price  is Rs.43.80.

The PE Ratio stands at 5.02.

Vijaya Bank Chairman has said –

"The total business of the bank reached an all-time high of Rs 1,37,594 cr during the period under review, comprising deposits of Rs 81,756 cr and advances of Rs 55,838 cr, a 21.15 per cent growth over the previous period

“The bank aims to reach a business level of Rs 1,44,000 cr in the fourth quarter, with a deposit target of Rs 85,000 cr and an advances target of Rs 59,000 cr. 

"Focus will be on improving the NIM by mobilising more CASA and retail deposits to reduce costs and increasing retail and mid-corporate advances for improving yields. 

“yield on advances rose to 11.62 % during the first nine months of FY'12 from 10.13 % in the corresponding period of the previous year. The total interest income on advances during the period under review stood at Rs 4,403 cr. as against Rs 3,015 cr. during the first nine months last fiscal.”

From what the CMD said above – especially regarding improving NIMs in 4th Quarter, we get the feeler that the drop in NET PROFITS  is one time occurrence – and will not recur in coming quarters.

He said the bank stood to gain Rs 390 cr from RBI's move to reduce the CRR by 50 basis points, which will infuse Rs 32,000 cr into the credit market.

What do the Banks in general feel about the future – especially after the CRR Cut by the RBI?

The CMD, Vijaya Bank says - "This is a positive indication as the RBI wants to say that the market revival has started. Overall liquidity will go up and this will help banks to reduce their interest costs."

This is true. All Banks can be expected to perform well in the 4th Quarter as the CRR cut boosts their funds Position. There may be further indication by RBI in future about interest Rate reduction as well – which will improve the Credit environment significantly. This will further improve the profitability of most of the Banks.

RESULTS TABLE
VIJAYA BANK
31-Dec-11
30-Sep-11
%dif1
30-Jun-11
31-Mar-11
31-Dec-10
%dif2
Interest on Advances
156988
150255
4.48
133078
117693
103687
51.41
Income on Investments
47602
45833
3.86
44633
42609
42831
11.14
Income on Balances With RBI
32
2
1500
18
61
54
-40.74
Others
1204
3176
-62.1
767
515
1679
-28.29
Interest Earned
205826
199266
3.29
178496
160878
148251
38.84
Other Income
11566
10567
9.45
16844
14288
10189
13.51
Total Income
217392
209833
3.6
195340
175166
158440
37.21
Interest Expended
158366
147931
7.05
136194
113044
94619
67.37
NET INTT INCOME
47460
51335
-7.55
42302
47834
53632
-11.51
Employees Cost
17045
16517
3.2
16948
38708
20820
-18.13
Other Oprtng Expenses
11807
11411
3.47
9647
12418
10341
14.18
Oprting Expenses
28852
27928
3.31
26595
51126
31161
-7.41
Total Expdr.excl.prov.
187218
175859
6.46
162789
164170
125780
48.85
Operating Profit
30174
33974
-11.2
32551
10996
32660
-7.61
Provisions
16724
9587
74.44
23129
8573
11480
45.68
Profit before tax
13450
24387
-44.9
9422
2423
21180
-36.5
Tax Expense
1023
4034
-74.6
2200
-3000
6000
-82.95
Net Profit
12427
20353
-38.9
7222
5423
15180
-18.14
Face Value (Rs.)
10
10
0
10
10
10
0
Paid-up Equity
47267
47267
0
47267
47267
43352
9.03
Capital Adequacy Ratio
10.94
11.27
-2.93
12.27
12.59
12.85
-14.86
Basic EPS
2.63
4.31
-39
1.53
0.65
3.09
-14.89
Gross/Net NPA
99710
76115
31
83269
74116
59854
66.59
 % of Gross/Net NPA
1.81
1.42
27.46
1.65
1.52
1.38
31.16
Return on Assets
0.55
0.95
-42.1
0.34
0.28
0.86
-36.05
Public holding (%)
42.31
42.31
0
42.31
42.3
46.13
-8.28

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