Bank of America which is facing a tough time in its US operations on account of the sub prime crisis has recorded a 56% jump in its net profit to Rs 305.2 crore as against Rs 195.5 crore last year, for the year ended March 31, 2008, in India. During FY08, revenue increased by 30% to Rs 861.7 crore from Rs 662.9 crore.
Improved margins and increased volumes resulted in a 34% improvement in net interest revenue to Rs 350.5 crore from Rs 261 crore a year earlier, the bank said. Non interest revenue increased 49% to Rs 348 crore compared to Rs 232.8 crore last year.
?By employing a much focused strategy, our Indian operations have been able to consistently deliver superior returns year after year,? said Vishwavir Ahuja, country executive, Bank of America, India.
Ahuja explained that the increase was largely driven by enhanced revenue from providing multiple client services that included risk management and hedging services, domestic capital raising, client specific structured solutions, foreign exchange management services, increased treasury income and other fee-based activities.
The bank continued to report nil net non-performing assets (NPAs) during this year as well. ?We have placed a robust credit appraisal in place which helps us in keeping a check on our NPAs. We are very choosy about our business portfolio. Good asset quality, focus on client selection with a robust risk management system is helping us in keep a check on our NPAs,? Ahuja said.