ING Vysya continues to be conservative in provisioning

Commenting on the performance of the bank in the second quarter ended September 30, Shailendra Bhandari, MD & CEO, ING Vysya Bank says, although the quarter was a challenging for the entire banking industry, the bank has been able to maintain the momentum.

The bank showed sixteenth sequential quarter of growth in net profits at Rs 176.30 crore with an increase of 17.4 percent, which was on account of healthy growth in Net Interest Income (NII) that grew by19.4 percent to Rs 440.30 crore from Rs 368.80 crore in the corresponding quarter of the previous year. Although the other income growth was less dramatic at 9.5 percent, which was impacted by losses on sale of securities, adds Bhandari. According to thim the bank saw strong traction both in advances and deposits and their CASA ratio is the best in the industry at 32.5 percent. Overall asset quality too was sound during the quarter. Gross non performing assets (NPAs) in percentage terms declined from 1.9 percent to 1.74 percent, while net NPAs were steady at 19 bais points, says Bhandari. Provision cover for the bank remains best in the indsutry at around 89 percent.