Riding on change of portfolio in a right manner and clear focus on mark-to-market (MTM) management, the net profit of state-run Bank of India (BoI) has gone up by 78.41% to Rs 562 crore during the first quarter (Q1) of 2008-09 as on June 30, from Rs 315 crore a year ago. The increase in MTM provisions to Rs 129 crore on the investment portfolio of the bank during the observed period.

Briefing on the Q1 results in Mumbai on Monday, TS Narayanasami, BoI chairman and managing director, said, ?We put 85% of our portfolio in statutory liquidity requirement (SLR) in the held-to-maturity category (HTM), which is free from MTM losses, and the remaining chunk in other two remaining categories. This resulted in the increase of core non-interest income (net of treasury) by 54% to Rs 385 crore.?

While deposits grew by 30.14% to Rs 1,59,234 crore, advances rose by 38.84% to Rs 1,22,889 crore.

Though advances in sectors like agriculture (28.73%) and rural sector (12.93%) witnessed remarkable growth, it remained slack on the retail side at 12.92%.

It?s business-mix reached Rs 2,82,123 crore, showing an increase of 33.79%. Total income for the period rose by 32.5% to Rs 4115 crore. Net interest income grew by 24.71% to Rs 1181 crore due to increase in the credit portfolio by 39% to Rs 122889 crore, whereas non interest income surged by 48.56% to Rs 566 crore.

Net NPA dropped to 0.52% from 0.89% a year ago. The capital adequacy ratio enhanced to 12.24% (Basel I) and the Basel II CRAR rose to 12.39%. The global-interest spread of the bank currently stands at 2.57. However, there was a marginal fall in domestic net interest margin (NIM) during the period to 3.30 from 3.52.

IOB sees biz growth

Indian Overseas Bank (IOB) has reported a 25% growth in total business to Rs 148,420 crore for the quarter ended June 30, 2008 as against Rs 118,814 crore during the same period last year, an increase of Rs 29,606 crore. The deposits grew 21.08% to Rs 85,001 crore as against Rs 70,205 crore while the advances jumped to Rs 63,419 crore, posting a growth of 30.46%.

The total income during the period stood at Rs 2,186.83 crore as against Rs 1,907.79 crore, an increase of 14.63%. The income from interest has gone up 20.09% to Rs 2,217.08 crore (Rs 1,846.21 crore). The net profit for the quarter went down to Rs 255.97 (Rs 268.49 crore).

Operating profit too sharply went down to Rs 241.18 crore as against Rs 409.17 crore. The decrease has been mainly due to losses booked on account of inter-segment category transfer of securities and loss on sales of securities and provision for wage arrears, said the bank. The net NPA as a percentage has gone upto 0.75% (0.50%). However, the gross NPA was brought down to 1.73% (2.34%).

Meanwhile, the net income from interest was marginally higher at Rs 726.17 crore (Rs 709.02 crore). The CRAR under Basel I during the first quarter stood at 11.41% (13.31%) with the tier I component at 7.63%. Under Basel II, the ratio is at 11.25%.

The slide in the ratio over the year was due to increase in volume of business and consequent increase in risk-weighted assets from Rs 71,597 crore to Rs 55,025 crore during the one-year period.

The book value per share has gone upto Rs 91.40 (Rs 76.12). The credit-deposit (CD) ratio improved to 74.61% (69.24%).

The share of low-cost deposits to total deposits come down from 32.76% to 30.55%.

Dena Bank net profit up 23%

Dena Bank has recorded a 23%-rise in its net profit to Rs 68 crore in the first quarter of 2008-09 as against Rs 56 crore profit in the corresponding period last year. Total income for the quarter rose by 19% to Rs 834 crore as against Rs 702 crore in the first quarter of the last fiscal.

For the quarter, gross advances and total deposits grew by 27% to Rs 23,101 crore and 24% to Rs 34,631 crore respectively on year-on-year basis. As on June 30, the bank?s capital adequacy ratio and net NPA stood at 11.27% and 31% respectively.

Net interest margin for the quarter was 2.71%. The bank?s interest income rose by 22% to Rs 767 crore whereas the non-interest income went down by 19% to Rs 67 crore.

The bank?s provisioning for the quarter stood at Rs 56 crore.

PL Gairola, chairman and managing director, Dena Bank, said, ?In March 2008, we made an additional provision of Rs 66 crore towards bad debts as a prudent measure in advance.On treasury portfolio, we suffered a hit of Rs 62 crore in the first quarter of 2008-09.

Out of this, Rs 12 crore has already been booked as mark to market loss and the rest Rs 50 crore has been marked as mark-to-market depreciation. If Rs 66 crore would have not provided by our bank way back in March, the total provisioning at the end of the quarter would have stood to Rs 112 crore.?

Kotak Mahindra net up 3%

Indian private sector lender Kotak Mahindra Bank on Monday announced a consolidated net profit of Rs 149.84 crore for the first quarter of current fiscal, a marginal 2.67% growth over the corresponding period a year ago.

The company had net profit of Rs 145.93 crore in the first quarter of FY08, Kotak Mahindra Bank said in a filing to Bombay Stock Exchange. The total income of the company rose to Rs 1,487.24 crore in the quarter ended June 30, 2008-09 from Rs 1,392.38 crore in the year-ago period.

Kotak Mahindra Bank has posted standalone net profit of Rs 54.53 crore for the first quarter of 2008-09 , a 14.39% growth from Rs 47.67 crore over the corresponding quarter a year ago.

The total income increased by 33.83% to Rs 795.59 crore in the June 2008, from last year’s Rs 594.45 crore. Deposits of the bank grew by 43% to Rs 16,310 crore as on June 30, from Rs 11,420 crore in the last year.

Total number of deposit accounts were 831,000 as on June 30, while the figure stood at Rs 433,000 last year.

Shares of the company were trading at Rs 551.50, down 1.46% on the BSE in the afternoon trade.