BoI seeks Rs 2,000-cr infusion from Govt

Written by Agencies | Mumbai | Updated: Oct 30 2009, 00:46am hrs
State-owned Bank of India (BoI) has sought a Rs 2,000 crore capital infusion from the Government even as its Q2 net profit fell by 57.67 per cent due to high provisions.

BoI's total net profit in the quarter ended September 30 dropped to Rs 323.34 crore as against Rs 763 crore in the year-ago period after it provided Rs 883 crore during the three-month period as against Rs 452 crore provisioning made in the year-ago period.

Out of the total provisioning, Rs 470 crore was provided to cover its bad-loans.

Gross NPAs escalated to 2.61 per cent in Q2 from 1.53 per cent a year-ago, while the net NPAs rose to 1.08 per cent from 0.48 per cent last year, the lender said.

BoI expects to receive the Rs 2,000-crore capital from the Government by March-April 2010, which will help it to support the business growth, bank Chairman and Managing Director Alok Misra told reporters in Mumbai.

The lender witnessed around 60 per cent of the total slippages in the second quarter from the restructured assets, Misra said.

Total income grew by 12 per cent to Rs 5,164.96 crore from Rs 4,612.27 crore in the year-ago quarter, while net interest income rose by 3.37 per cent to Rs 1,409 crore from Rs 1,363 crore a year-ago, he said.