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

Mid-sized private sector lender ING Vysya Bank on Tuesday reported an 18% 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% from 1.75% a year ago.

The provisions for bad and doubtful assets soared 48% 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% at Rs 690.7 crore, while the other income dipped 7% to Rs 227.6 crore. The net interest income grew 9% at Rs 463.1 crore.

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

Investors were not enthused with the numbers and the company scrip slipped 1.20% to Rs 619.40 apiece on the BSE, whose 30-share benchmark ended the session with gain of 1.21%.