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Bank of India
Q1 net profit increases 42%
Our Banking Bureau
16 July 2002
 Mumbai:
Bank
of India has posted a 42.43-per cent rise in net profit
for the quarter ended 30 June 2002 at Rs 177.15 crore
as compared to Rs 124.38 crore in the corresponding quarter
in the previous year.
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 bank’s
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 India’s 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.
 Global
deposits are up 16.59 per cent at Rs 60,833 crore. Domestic
deposits grew by 16.81 per cent to touch Rs 49,640 crore, while
foreign deposits rose by 15.61 per cent to reach Rs 11,193 crore.
For the current year, the
bank is targeting an operating profit of Rs 1,650 crore and a net
profit of Rs 700 crore, says Krishnamurthy.
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