BoI Q3 Net Climbs 16%

Mumbai, Jan 29: | Updated: Jan 31 2004, 05:30am hrs
Bank of India (BoI) has registered a 16.08 per cent jump in its net profit for the third quarter of the ongoing fiscal at Rs 228.55 crore, compared to Rs 196.89 crore during the corresponding period last fiscal. Operating profit during the period stood at Rs 538.46 crore (Rs 467.01 crore), reflecting a jump of 15.30 per cent.

The board which approved the results on Thursday declared an interim dividend of 20 per cent. Net profit for the first nine months grew by 15.96 per cent at Rs 659.22 crore (Rs 568.47 crore). Operating profit for the same period was at Rs 1,558.46 crore (Rs 1,310.76 crore).

There was pressure on the banks profit from sale of investments. The banks other income for the third quarter has declined because of the fall in treasury profit. Said BoI chairman and managing director M Venugopalan: Now, we would like improve our fee-based income.

BoIs non-food credit has grown 8.64 per cent (Rs 2,580 crore) on a year-on-basis. Mr Venugopalan is optimistic about matching this growth rate in the next quarter. Net non-performing assets (NPAs) declined to 4.99 per cent at December 2003 from 5.09 per cent at a year back. Capital adequacy ratio stood at 12.85 per cent as on december 2003 from 11.04 per cent in December 2002.

BoI is in talks with Bank of Baroda for a joint venture in Brazil. The bank is also exploring possibilities to spread its wings to Argentina, Nigeria and Asian countries like Bangladesh.