ING Vysya’s Net Profit Dips 18% In First Quarter

ING Vysya Bank's net profit for the quarter ended June reported a drop 18% at Rs 143.4 crore against Rs 175.1 crore in the corresponding quarter of the previous year.

The net interest income (NII) for the quarter increased by 8.8% to Rs 463.1 crore as compared to Rs 425.4 crore in same period last fiscal. The increase in NII resulted after interest reversal of Rs 20.5 crore in a few large stressed accounts. The net interest income was increased by 13.7% after adjusting for the interest reversals. The adjusted net interest margin is 3.52% as compared to 3.56% in the year-ago quarter and the total income increased to Rs 690.7 crore against Rs 669.9 crore.

Shailendra Bhandari, managing director, ING Vysya, said, "We have been indicating for some time that the challenging macroeconomic environment would at some stage also impact our asset quality. We had a few accounts slip to NPAs (non-performing assets) this quarter.”

"However, with these large flows, we see stability return to asset quality and believe that fresh movements to NPAs should revert to the levels we have normally experienced in the past. We have seen a strong pick-up in our core business," he added.