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Vijaya Bank posts Rs. 73 cr. Q1 net

Special Correspondent

Cheque truncation system to be introduced in Delhi

BANGALORE: Vijaya Bank bounced back with a net profit of Rs. 72.63 crore in the first quarter (April-June) of the current fiscal after posting a net loss of Rs. 34 crore in the fourth quarter (January-March) of the previous fiscal. On a year-on-year basis, the first quarter net profit surged from Rs. 27.56 crore.

"The result confirms my view that one quarter is enough for banking to turn around.

"During the fourth quarter of 2005-06, we had posted a net loss of Rs. 34 crore. This quarter we have seen a reversal of that by notching a net profit of Rs. 72.63 crore," Prakash P. Mallya, Chairman and Managing Director, Vijaya Bank, told reporters here on Saturday.

The CMD said the gross operating profit during the first quarter declined marginally by 3.56 per cent to Rs. 195.11 crore from Rs. 202.32 crore a year ago mainly due to a dip in profit from treasury operations. "The reduction in gross operating profit was mainly on account of drop in profit on sale of investments by Rs. 36.91 crore on account of hardening of yield levels and the consequent restricted treasury activity. Treasury trading profit during the quarter declined to Rs. 22.42 crore from Rs. 59.33 crore a year earlier," he said.

Mr. Mallya said the bank was awaiting approvals from the Union Government and the Reserve Bank of India for opening representative offices in Hong Kong, China, Dubai and Malaysia.

It was also in the process of introducing cheque truncation system in Delhi.

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