Financial Daily from THE HINDU group of publications
Sunday, Jan 22, 2006
Financial Daily from THE HINDU group of publications Sunday, Jan 22, 2006 |
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Money & Banking
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Financial Performance Corporate Results - Public Sector Banks Bank of India net up 90 pc in Q3 Our Bureau
Mumbai , Jan. 21 BANK of India has reported a 90 per cent increase in third quarter net profit at Rs 143.1 crore from Rs 75.03 crore in the year-ago period. The bank has consciously cut down on high-cost deposits and reduced the low-yielding advances, said Mr M. Balachandran, Chairman and Managing Director, Bank of India. Total income rose to Rs 2,063.09 crore from Rs 1,743.27 crore. Other income was Rs 262.5 (Rs 233.42 crore). Net interest income was Rs 656.58 crore (Rs 619.09 crore). Total expenditure increased to Rs 1,688.39 crore (Rs 1,362.47 crore). The Capital Adequacy Ratio was at 11.37 per cent (11.9 per cent). "Retail credit grew by 38 per cent and now forms 26 per cent of total credit and housing loan portfolio has increased by 50 per cent," Mr Balachandran said. Housing loans for the nine-month period were at Rs 3,411 crore (Rs 2,322 crore). "We have focused more on retail and in that, more on asset-backed retail, such as mortgages," the Chairman said. The proportion of net NPAs to total assets was at 1.98 per cent (3.85 per cent). In the nine-month period, the bank made a provision of Rs 320 crore for NPAs. The bank also planned to reduce its net NPAs to 1.5 per cent by this fiscal, Mr Balachandran said. For the period ended December 31, 2005, the total deposits grew to Rs 87,794 crore (Rs 77,029 crore) and total advances increased to Rs 62,774 crore (Rs 54,218 crore). The bank has shed Rs 2,500 crore MIBOR-related advances and low-cost corporate advances. This has helped to increase the yield on advances. "We have been able to re-price loans at a higher rate. We took a conscious decision to shed high-volume low-yielding advances and increased our resources through low-cost deposits," Mr Balachandran said. The share of low-cost deposits improved to 41.39 per cent of total deposits, from 39.75 per cent. For this fiscal, the bank has targeted 20-22 per cent growth in credit and 15 per cent growth in deposits. Mr Balachandran said the bank would wait for the new instruments from the RBI regarding innovative Tier-I and Tier-III capital.
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