Fast Growth

May 26, 2012 (LBO) – Sri Lanka DFCC Vardhana Bank’s profits in the March 2012 quarter rose 161 percent to 150 million rupees from a year earlier, helped by higher business volumes and provision reversals, interim accounts showed. The bank’s gross non-performing loan ratio grew to 4.54 percent by end March from 4.35 percent in December.

Loan loss provisions in the March quarter doubled to 76 million rupees.

Deposits grew 23 percent to 41 billion rupees by end March 2012 from December 2011.

Gross assets grew 15 percent to 52.9 billion rupees and net assets grew 16 percent to 4.8 billion rupees.

Capital adequacy fell to 15.24 percent in March from 17.15 percent in December but was higher than the required 10 percent.

The bank reported earnings of 68 cents per share for the quarter. The stock closed at 118.30 rupees up 2.60 rupees on Friday.

The bank said return on assets fell to 1.21 percent from 1.39 percent a year earlier. Return on equity was 12.6 percent from 13.54 percent.

Interest income rose 77 percent to 1.3 billion rupees in the March quarter, interest expenses rose at a faster 109 percent to 809 million rupees and net interest income grew at a slower 43 percent.

Fee income rose