Bank of India Q1 net profit increases 42%

Mumbai:
16 July 2002

The growth in net profit can be ascribed to a substantial increase in treasury income from the sale of securities, at Rs 147 crore for the quarter ended 30 June 2002 (Rs 65 crore).

The total income of the bank stood at Rs 1,698.55 crore (Rs 1,531.69 crore). This is inclusive of the interest earned at Rs 1,412.17 crore (Rs 1,332.63 crore) and other income at Rs 286.38 crore (Rs 199.06 crore).

The total expenditure, excluding provisions and contingencies, stood at Rs 1,319.07 crore (Rs 1,291.33 crore). The operating cost to the net income has declined to below 50 per cent from the previous 61 per cent.

"The cost control measures taken during the year, coupled with benefits accrued following the voluntary retirement scheme implemented last year, have resulted in operating costs declining," says Bank of India chairman and managing director K V Krishnamurthy.

The provisions and contingencies were at Rs 142.28 crore (Rs 69.96 crore). The banks gross non-performing assets (NPA) have declined to 8.91 per cent (10.42 per cent). The net NPA has declined to 5.78 per cent (6.79 per cent).

Bank of Indias global advances (net) went up by 25.40 per cent on a year-on-year basis to touch Rs 39,234 crore. Domestic advances grew by 23.08 crore to touch Rs 28,854 crore, while foreign advances rose by 32.33 per cent to Rs 10,380 crore.