BoI Q2 Net Up 44% To Rs 194 Crore

Mumbai, October 28: | Updated: Oct 29 2002, 05:30am hrs
Bank of India (BoI) has posted a 44 per cent rise in net profit at Rs 194.43 crore for the second quarter ended September 2002 on the back of a rise in non-interest income of Rs 356.08 crore, up 36.76 per cent. Interest income of the bank went up by 4.13 per cent to Rs 1,512.93 crore.It is also planning to raise Rs 450 crore for tier-II capital in the next few months to impart flexibility to grow its business further by increasing its capital adequacy ratio (CAR) above 11 per cent, the bank chairman and managing director, KV Krishnamurthy told presspersons on Monday. The banks present CAR is 10.12 per cent, against 12.10 per cent at the end of September last year.

For the half-year ended September 2002, the bank posted a rise of 43 per cent in net profit to Rs 371.58 crore on interest earnings of Rs 2925.10 crore, which is 11 per cent growth over that of the same period last year.

Said Mr Krishnamurthy: Cost of deposits have come down to 5.51 per cent by September 2002 from 5.95 per cent end of September 2001. The cost of funds was also down to 5.33 per cent from 5.88 per cent. Simultaneously, the spread has also come down along with them to 2.74 per cent from 2.83 per cent. There is nothing to be concerned about lower spreads, we are confident that we can make up this thing on higher volumes.

The bank has witnessed a higher profit before tax (PBT) from foreign operations during the first half by posting 77.50 crore against the PBT of Rs 89.62 crore for the year ended March 2002. The bank has 19 branches or offices outside India. On Ketan Parekhs dues, Mr Krishnamurthy said that Rs 30 crore had been recovered already and the bank was not ready to offer any concessions on the dues from the capital market broker, the payorders worth Rs 137 crore issued by whom through Madhavpura Mercantile Co-operative Bank could not be realised by the bank in March 2001. The banks level of NPAs are still at a higher rate with 8.94 per cent as on September 30, 2002. However, in actuals the gross NPAs in September 2001, March 2002 and September 2002 were at Rs 2255 crore, Rs 2,304 crore and Rs 2,349 crore respectively.