The operating profit rose marginally by 1.88 per cent to Rs 255.85 crore for the third quarter ended December 31, 1999, up from Rs 251.15 crore in the corresponding period of the previous fiscal. However, for the nine-month period, the operating profit went down from Rs 741.36 crore to Rs 721 crore.

``The marginal increase in net and operating profit in the third quarter can be attributed to declining spreads on fund and non-fund-based business during the third quarter,'' said a BoB release issued on Monday.

According to the bank release, the result for the quarter ended December 31, 1999, has been arrived at after considering provisions of 0.25 per cent on standard advances and provision for taxes and contingencies including bonus, gratuity, pension and leave encashment benefits of employees on an estimated basis.

``The bank has accounted for wage revision as per the memoranda of understanding entered by the Indian Banks' Association (IBA) with the workmen and officers' unions,'' it said. The bank made provisions of Rs 124 crore for the period ended December 31, 1999, down from Rs 133 crore in the corresponding period of the previous year.

Total income increased 6.76 per cent to Rs 1,430.26 crore for the quarter ended December 31, 1999, as against Rs 1,339.69 crore in the same period last year. The bank's interest income in the reporting quarter rose marginally by 7 per cent to Rs 1,296.64 crore from Rs 1211.54 crore in the same of the previous fiscal. Other income shot up by 4.26 per cent to Rs 133.62 crore from Rs 128.15 crore.

The total expenditure rose by 7.9 per cent to Rs 1,174 crore in the third quarter of 1999-2000, up from Rs 1,088.54 crore in the corresponding period in the previous year. The interest expenditure rose to Rs 858.75 crore, up from Rs 808.42 crore and operating expenses rose to Rs 315.66 crore from Rs 280.12 crore in the corresponding period of the previous year. The bank recorded a year on year (YoY) growth of 13 per cent.

``Bank has taken new initiatives in the area of risk management, new products development, technology upgradation and retail lending,'' the BoB release said.