Vijaya Bank - 1QFY2014 Result Review - Angel Broking

Vijaya bank reported healthy operating performance for the quarter. NII for the bank grew by only 5.7% yoy to Rs. 481cr. Non-interest income grew strongly by 117.6% yoy to Rs. 267cr, probably boosted by treasury gains. Thus pre-provisioning profit for the bank grew by 87.3% yoy. During the quarter, the bank continued to witness asset quality stress, as Gross and Net NPA levels increased sequentially by around 7-8%. Provisioning expense reduced by 31.8% yoy to Rs. 89cr, due to which earnings grew strongly by 157.8% yoy to Rs. 287cr.

At the CMP, the stock is trading at 0.4x FY2015E ABV. We maintain our Neutral recommendation on the stock.

Source : Equity Bulls

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