Bangalore: Vijaya Bank, reported second quarter profits of Rs71.43 crore, lower by 25.5 per cent against Rs95.89 crore in the corresponding period of July-September 2003. Total income during the quarter was Rs592.83 crore down from Rs631.67 crore in the corresponding previous period.

The drop in income from investments and higher provisions for the reduced investments has resulted in the lower numbers, the bank said in a press release.

Vijaya Bank''s interest earned during the quarter rose to Rs509.35 crore from Rs472.15 crore in the corresponding previous period. Income from investments fell to Rs213.69 crore, (Rs227.91 crore). Other income fell to Rs83.48 crore, (Rs159.52 crore).

The bank increased its provisions and contingencies to Rs144.86 crore, up from Rs9,043 crore last fiscal. The bank has reported an improved capital adequacy ratio of 13.4 per cent (12.96 per cent).

Net NPAs fell by 44.5 per cent from Rs138.35 crore in Q2 03-04 to Rs76.68 crore during the current fiscal. The bank has reported a lower cost of deposits from 6.26 per cent to 4.23 per cent while cost of funds has also come down from 5.58 per cent to 4.23 per cent.