ING Vysya Bank announced its unaudited financial results for the quarter ended 31 December 2014 following the approval by its Board of Directors at their meeting held at Bengaluru today.

Performance at a Glance

Q3’ FY 15 v Q3’ FY 14

• Net Interest Income up 18% to Rs. 491.6 crores

• Net interest margin at 3.37% compared to 3.35%

• Customer Assets up 18.2% to Rs. 42,886 crores

• Deposits up 18.0% to Rs. 45,951 crores

• CASA up 8.1% to Rs. 14,620 crores

• CASA ratio at 31.8%

• Gross NPA at 1.86%, Net NPA at 0.66%

YTD December 14 v YTD December 13

• Net Profit at Rs. 469.2 crores

• Net Interest Income up 13% to Rs. 1,451.6 crores

• Operating profit at Rs. 913.7 crores

Financial Highlights

The Net Profit (PAT) of the bank for the quarter ended 31 December 2014 is Rs. 145.7 crores compared to Rs. 167.3 crores in the corresponding quarter of the previous year.

Net Interest Income (NII) for the quarter increased by 18.1% to Rs. 491.6 crores from Rs. 416.1 crores in the corresponding quarter of the previous year. Net Interest Margin (NIM) was at 3.37% compared to 3.35% in the corresponding quarter of the previous year. Other income decreased by 4.2% to Rs. 205.6 crores from Rs. 214.6 crores. Other income in the corresponding quarter of the previous year included a one off income of Rs 22.5 crores from sale of a strategic investment. Total income increased by 10.5% to Rs. 697.2 crores from Rs. 630.7 crores. Operating costs increased by 17.0% to Rs. 417.1 crores from Rs. 356.4 crores. Operating costs was impacted by higher accruals for pension benefit due to sharp decline in interest rates. Cost Income ratio is at 59.82% compared to 56.51% in the corresponding quarter of the previous year. Operating profit increased by 2.1% to Rs. 280.1 crores. Provisions and contingencies were higher at Rs. 61.5 crores from Rs. 23.0 crores in the corresponding quarter of the previous year. Provisions and contingencies during the quarter included Rs. 19.8 crores of amortisation related to asset sale to reconstruction company in the first half of the current year.

Gross NPA ratio & Net NPA ratio are 1.86% and 0.66% respectively as at 31 December 2014 from 1.68% and 0.21% respectively as at 31 December 2013. Provision coverage ratio as at 31 December 2014 is 64.88%.

The Net Profit (PAT) of the Bank for period ended 31 December 2014 is Rs. 469.2 crores compared to Rs. 518.7 crores reported in the corresponding period of the previous year. Net Interest Income (NII) increased by 13.2% to Rs. 1,451.6 crores from Rs. 1,281.9 crores. Other income increased by 2.8% to Rs. 661.8 crores from Rs. 643.7 crores. Total income increased by 9.8% to Rs. 2,113.4 crores from Rs. 1,925.6 crores for the period ended 31 December 2014. Operating costs increased by 14.5% to Rs. 1.199.7 crores from Rs. 1,048.1 crores. Operating profit increased by 4.1% to Rs. 913.7 crores. Provisions & contingencies increased to Rs. 212.0 crores from Rs.109.2 crores in the previous year.

Commenting on the results, CEO Designate, Uday Sareen said: “Our customer assets and deposits grew by a healthy 18%. We continued to invest in our network and have added 10 branches & 15 ATMs during the quarter. Shareholders of the Bank approved the proposed merger with Kotak Mahindra Bank with an overwhelming majority at our EGM held earlier this month, and we have commenced the process of getting the mandatory regulatory approvals for the same.”

Business Highlights

Current and Savings (CASA) deposits grew by 8% to Rs. 14,620 crores from Rs. 13,528 crores. CASA ratio was at 31.8% as at end of December 2014. Total Deposits grew by 18% to Rs. 45,951 crores from Rs. 38,956 crores.

Customer Assets grew by 18% to Rs. 42,886 crores at the end of December 2014 compared to Rs. 36,297 crores as at end of December 2013.

The Capital Adequacy Ratio (CAR) of the Bank as at 31 December 2014 was 14.02% (as per Basel-III). (without considering current year’s profit)

Financial Indicators

Significant Development

On 20 November 2014, the Board of Directors of ING Vysya Bank and Kotak Mahindra Bank approved an all-stock amalgamation of ING Vysya Bank with Kotak Mahindra Bank. Subsequently on 7 January 2015, the Shareholders of the Bank in Extraordinary General Meeting approved the Scheme of Amalgamation of ING Vysya Bank Limited with Kotak Mahindra Bank Limited, pursuant to Section 44A of the Banking Regulation Act, 1949 and the Reserve Bank of India’s guidelines for merger and amalgamation of private sector banks dated 11 May 2005. The Scheme was earlier approved by the Board of Directors in its meeting held on 20 November 2014. The equity share exchange ratio has been approved at 725 equity shares of Rs. 5.00 each of Transferee Bank for 1000 equity shares Rs. 10.00 each of Transferor Bank. The Appointed Date of the amalgamation will be  01 April 2015 or such other date as may be fixed mutually by Transferor Bank and Transferee Bank and sanctioned by the Reserve Bank of India. The amalgamation is subject to the approval of the Reserve Bank of India, Competition Commission of India and such other approvals as may be required.

Other Developments

During the quarter the Bank expanded its network by adding 10 branches & 15 ATMs. As of December 2014, the Bank had 583 branches and extension counters, 25 satellite offices and 650 ATMs.

The Bank won the International Data Corporation’s I.C.O.N.I.C IDC Insights award for Excellence in Customer Experience in the Banking Sector award along with Third Best Performing Bank at national level under the Private Sector Bank’s category by State Forum of Banker’s Club (Kerala).

Continuing its corporate social responsibility (CSR) initiatives, the Bank along with ING Vysya Foundation tied up with select NGO partners to provide free education to children from weaker sections of the society in Orissa, Karnataka, West Bengal, Maharashtra, Bihar and Uttar Pradesh. The Foundation also completed several rehabilitation programmes in flood-affected Jammu & Kashmir by providing temporary shelters to victims and also conducted various livelihood training programmes in Uttarakhand.

About ING Vysya Bank

ING Vysya Bank Ltd is a premier private sector bank with retail, private and wholesale banking platforms that serve over two million customers. With over 80 years of history in India and leveraging ING’s global financial expertise, the bank offers a broad range of innovative and established products and services, across its 583 branches and extension counters. The Bank, which has close to 10,000 employees, is also listed in Bombay Stock Exchange Limited and National Stock Exchange of India Limited. ING Vysya Bank was ranked among top 50 most valuable brands in India by Millward Brown in their BrandZ Top 50 Most Valuable Brands in 2014.

ING is a global financial institution of Dutch origin offering banking services through its operating company ING Bank and holds significant stakes in listed insurers NN Group NV and Voya Financial, Inc. ING Bank’s 53,000 employees offer retail and commercial banking services to customers in over 40 countries.

Corporate Identity Number: L85110KA1930PLC000124; Tel/Fax: 080–25005000/080–25005555

Email: communications@ingvysyabank.com | Website : www.ingvysyabank.com

Address: ING Vysya House, #22, MG Road, Bangalore-560001