The Hindu Business Line : Growth in net interest income boosts ING Vysya profit 14%

Aided by growth in net interest income and improved net interest margin, ING Vysya Bank posted a 14 per cent growth in net profit to Rs 53.5 crore in the second quarter of this fiscal, compared with Rs 47 crore for the corresponding quarter last year. Its net interest income increased 22 per cent to Rs 191.4 crore (Rs 156.6 crore).

The bank’s cost of deposits for the quarter stood at 5.5 per cent (6.7 per cent) and this resulted in the growth in net interest margin, which was 3.1 per cent (2.9 per cent). Fee and other income registered a 23 per cent growth to Rs 151.6 crore (Rs 123.6 crore).

Commenting on the results, Mr Shailendra Bhandari, Managing Director, said said that the bank was able to make good progress, “in improving the quality of our deposit base, both in terms of cost of funds and CASA ratio. We have seen some increase in provisioning on account of advances, which have already been identified as being under stress (including a large one-off account).”

The focus over the next few quarters will be to increase productivity, raise low-cost deposits and manage risk, he said, in a press release.

The bank’s CASA (current account savings account) deposits stood at 32.7 per cent (29.1 per cent), while provisions and contingencies for the quarter has increased to Rs 62.6 crore (21.63 crore) including a one-time provision of Rs 21 crore made for a large account.

The bank’s gross NPA grew 113 bps to 2.57 per cent, and the net NPA was at 1.78 per cent (0.78 per cent). Under the Basel-I guidelines, the capital adequacy ratio as on September 30, 2009, was 14.45 per cent (10.52 per cent), while it is 14.48 per cent as per Basel II.

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