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Company : Vijaya Bank 
Wednesday, May 15, 2002 6:15PM IST (12:45PM GMT)
 
Vijaya Bank Reports Highest Profits in 70 Years
Bangalore, Karnataka, India

Vijaya Bank has performed creditably during the year 2001-02. The year has been the most profitable year for the Bank since its inception in 1931. The Bank's Balance Sheet as on 31.3.2002 and the Profit & Loss Account for the year ended 31.3.2002 [abridged version] are furnished in Annexure. The highlights of the Bank's performance are given below :

WORKING RESULTS

-- Net Profit crossed the Rs.100 Crore mark and amounted to Rs.130.90 Crore for the year 2001-02, as against Rs.70.73 Crore in 2000-01, recording 85.1% increase
-- Gross Profit [profit before Provisions & Contingencies] amounted to Rs.252.51 Crore as compared to Rs.178.48 Crore in 2000-01, recording 41.5% increase
-- Return on Assets improved to 0.86% from 0.53%.
-- Return on Net worth improved to 21.98% from 13.44%.
-- Earning per share improved to Rs.3.65 from Rs.2.48.
-- Total Income increased to Rs.1727.33 Crore, from Rs.1512.45 Crore recording 14.2% increase. Non-interest income recorded 20.8% growth.
-- Operating Expenses declined to Rs.421.63 Crore, from Rs.438.13 Crore mainly due to decline in staff cost to Rs.305.92 Crore from Rs.330.42 Crore.

CAPITAL STRUCTURE
-- Due to return of Capital, amounting to Rs.25.72 Crore to the Government, the share holding of Government of India declined to 70.02% from 72.16%.
-- Owned funds rose to Rs.663 Crore from Rs.599 Crore.
-- The Capital Adequacy Ratio improved to 12.25%, from 11.5% and is well above the norm of 9%.

ORGANISATIONAL RESTRUCTURING
-- Head Office set-up was restructured by merging / closing certain departments.
-- Regional Offices were restructured by merging 9 Regional Offices thereby reducing the number of Regional Offices to 14 from 23.
-- Branch network was rationalised by merging 16 branches with nearby branches.

DEPOSIT MOBILISATION
-- Total deposits increase to Rs.14681 Crore, from Rs.12632 Crore recording 16.2% increase, as against 9% in 2000-01.
-- Average aggregate deposits recorded an increase of 17.9%, as against 13.7% in 2000-01.
-- Growth rates at 16.2% and 17.9% were higher than the corresponding growth rates of 14.3% and 17.6% recorded by Scheduled Commercial Banks in 2001-02.

CREDIT EXPANSION
-- In line with the trends in the industry, Total Credit recorded a lower increase of 8.3%.
-- Disbursements under retail lending schemes amounted to Rs.505.73 Crore, of which, disbursements to Housing Sector is Rs.65.75 Crore.
-- The percentage of priority sector credit constituted 41.1% of net credit in March, 2002 and is above the norm of 40%.
-- Disbursements under the Special Agricultural Credit Plan amounted to Rs.573 Crore .
-- Kisan Card base increased to 72,820, from 37,250

NON-PERFORMING ASSETS
-- Percentage of Gross NPAs to Gross Advances declined to 9.39% from 10.01%
-- Percentage of Net NPAs to Net Advances declined to 6.02% from 6.23%

RISK MANAGEMESNT
-- Introduced the concept of Risk Rating and intensive monitoring of high value exposures

CREDIT CARD BUSINESS
-- Credit Card base increased to 74,761 from 70,345
-- Credit Card turnover improved to Rs.176.72 Crore, from Rs.152.59 Crore recording 15.8% increase.

INSURANCE BUSINESS
-- Propose to enter into equity participation with one of the world's largest groups in financial services to render insurance business

COMPUTERISATION
-- The coverage of computerised branches in total business improved to 76.7% from 72.6%
-- Single Window concept is introduced at 167 fully computerised branches
-- 347 branches / offices have been connected through I-Net.

HOUSE KEEPING
-- All branches balanced their books of accounts
-- All Inter branch entries upto 30.9.2001 have been eliminated, as per Reserve Bank of India stipulation

HUMAN RESOURCES
-- Staff strength reduced to 11,827 from 13,471
-- Staff productivity [average business per employee] improved to Rs.1.69 Crore, from Rs.1.23 Crore, a rise of 37.4%.

PLANS FOR 2002-03
-- To increase the total business to Rs.25000 Crore, compared to Rs.21000 Crore in March, 2002.
-- To disburse over Rs.1000 Crore under different retail lending schemes
-- To computerise 110 branches and to enhance the business coverage through computerisation to 82%; to install 50 ATMs
-- To implement Core Banking and Internet Banking at select branches.
-- To commence Depository Services and to provide Bancassurance Services at select branches.


BALANCE SHEET as at 31st March, 2002

BALANCE SHEET   
 
AS AT  
  31.3.2002  31.3.2001 
     
CAPITAL & LIABILITIES     
     
Capital  333.52  359.24 
Reserves & Surplus  329.51  240.20 
Deposits  14680.51  12632.24 
Borrowings  88.07  142.27 
Other Liabilities &
Provisions
 
712.89  882.66 
     
TOTAL  16144.50  14256.61 
     
ASSETS     
Cash and balances with     
Reserve Bank of India  1026.18  851.08 
Balances with Banks and money at Call and Short Notice

Investments 
629.05

7360.73 
595.67

5870.15 
Advances  6196.66  5720.01 
Fixed Assets  165.52  150.02 
Other Assets  766.35  1069.68 
     
TOTAL  16144.50  14256.61 
     
Contingent Liabilities  2501.00  2344.21 
Bills for Collection  400.34  482.34 
     


PROFIT & LOSS ACCOUNT for the year ended 31st March, 2002
PROFIT & LOSS ACCOUNT   
  FOR THE YEAR ENDED  
  31.3.2002  31.3.2001 
     
I. INCOME     
     
Interest earned  1538.50  1356.19 
Other income  188.82  156.26 
     
TOTAL  1727.33  1512.45 
     
II. EXPENDITURE     
     
Interest expended  1053.19  895.84 
Operating expenses Provisions and
Contingencies 
421.63
121.60 
438.13
107.75 
TOTAL  1596.42  1441.72 
     
III. PROFIT / LOSS     
     
Net Profit for the year
Profit brought forward
Less: Deferred Tax
Liability as on 31.3.2001 
130.90
91.90

4.75
87.15 
70.73
33.09

Nil
33.09 
Transfer from Investment     
Fluctuation Reserve  NIL  17.64 
TOTAL  218.05  121.46 
     
IV. APPROPRIATIONS     
     
Transfer to Statutory Res.  32.75  17.68 
Transfer to Investment     
Fluctuation Reserve  27.58  NIL 
Proposed Dividend  40.02  11.88 
Balance carried over to Balance Sheet  117.71  91.90 
     
TOTAL  218.05  121.46 

 
 
 
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Michael Bastian, Executive Director, Vijaya Bank