Bharat Overseas Bank net up to Rs 22.75 cr
By Our Banking Bureau | 18 May 2002
Chennai: Bharat Overseas Bank Ltd has reported a net profit of Rs 22.75 crore for the year 2001-02 as against Rs 17.50 crore for the previous year a growth of 30 per cent.
This was despite higher provisioning. Provisions against doubtful loans were Rs 11 crore up from Rs 7 crore previously. With the increased provisioning, 50 per cent of the banks non-performing assets are provided for.
The bank has declared a dividend of 15 per cent, which will go to the seven other scheduled commercial banks that are BOBLs promoters. The dividend payout works out to roughly 10 per cent of the net profit. The banks capital adequacy ratio has risen to 15.09 per cent from 14.43 per cent as at the end of the previous financial year.
At a press conference here, BOBL chairman G Krishna Murthy said the bank had recently mandated SBI Capital Markets to study the capital structure of BOBL in relation to the banks long-term vision document. SBI Caps, which will complete its study in a months time, is expected to advise the bank on how to strengthen the capital base.
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