The Hindu Business Line : Bank of India sees Rs 850-cr net this fiscal

BANK of India is likely to see a net profit of Rs 800-850 crore for FY 2005-06, on a conservative basis, as compared with Rs 340 crore for the year ended March 2005, said Mr M. Balachandran, Chairman and Managing Director.

The business mix comprising deposits and advances is expected to grow to Rs 1,63,108 crore from Rs 1,36,422 crore. During the current fiscal the bank expects deposits to touch Rs 93,458 crore and advances Rs 69,650 crore.

As part of its restructuring, BoI is setting up five strategic business units (SBUs) to take care of various functions. The five (SBUs) are: Large corporate _ for companies with investment of Rs 25 crore and more, mid-corporate _ for companies with investment of Rs 5 crore to 25 crore, SME _ for companies with investment of up to Rs 5 crore, and Agriculture and Retail.

The bank's core banking system will be in place by December 2006, Mr Balachandran said.

The bank is also planning to merge its 16 regional rural banks into three or four units and has submitted the proposal to RBI.

It also has a medium-term notes programme of $1.2 billion, of which it would raise the first tranche of $350 million in July.

About the overseas expansion plans, Mr Balachandran said the bank has licenses for expansion in China, Antwerp, Tanzania, Vietnam and Doha.

The overseas operations contributed 17-18 per cent of the net profit in 2004-05.

As of now, the bank has no plans to float a public issue to raise fresh capital, though it has the shareholders' approval, Mr Balachandran added.

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