ING Vysya net dips 18% on higher provisioning for bad assets

Mumbai: Mid-sized private sector lender ING Vysya Bank today reported an 18 per cent drop in net profit for June quarter at Rs 143.4 crore due to higher provisioning for bad assets.

The Bangalore-headquartered lender had posted a net profit of Rs 175.1 crore in the same period last fiscal.

The bank’s gross non-performing assets in the reporting quarter jumped to 2.39 per cent from 1.75 per cent a year ago. The provisions for bad and doubtful assets soared 48per cent to Rs 100.8 crore as against the Rs 68.1 crore in the year ago period.

The bank’s total income grew a paltry 3 per cent at Rs 690.7 crore, while the other income dipped 7 per cent to Rs 227.6 crore. The net interest income grew 9 per cent at Rs 463.1 crore.

Net interest margin also slipped to 3.37 per cent in the reporting quarter as against 3.56 per cent in the year ago period.

Investors were not enthused with the numbers and the company scrip slipped 1.20 per cent to Rs 619.40 apiece on the BSE, whose 30-share benchmark ended the session with gain of1.21 per cent.

PTI