The Hindu Business Line : Bank of America has no plans for retail

Mr Ahuja said that the bank expected demand for credit from corporates to continue at the same pace this year, as the growth momentum of the Indian economy is still high.

The interest rate too had not started to hurt yet or reached a level where it could retard growth prospects, he added.

"All key macroeconomic indicators show that corporate activity is continuing and growth is not slowing down."

The retail sector has been attracting many players, prompting foreign banks such as Deutsche Bank to make a re-entry into the segment.

Bank of America, which offers wholesale banking services in India, today reported almost 80 per cent rise in net profit to Rs 144.6 crore for 2005-06 against Rs 80.5 crore the previous year. "All our lines of business activity have contributed to the revenues."

Net interest income stood at Rs 179.4 crore (Rs 129.6 crore), while non-interest income was Rs 219.5 crore (Rs 118.7 crore).

The bank's non-interest income or non-fund comes from services such as risk management and derivatives, arranging domestic and offshore debt, cash management, treasury, and investment banking.

Of these, risk management, cash management, and arranging debt have contributed about 85 per cent to the non-fund income, Mr Ahuja said.

The bank is expecting higher debt demand from its clients next year as well. "Given the growth and expansion plans of Indian corporates, both organic and inorganic, there is a need for high degree of fund-raising."

Capital adequacy ratio was 23.4 per cent against 30.1 per cent last year. The asset base increased to Rs 5,992.7 crore (Rs 5,492.9 crore).

The bank's subsidiary, Banc of America Securities, which is a primary dealer, posted net profit of Rs 7.1 crore (Rs 2.8 crore).

"Last year we infused $175 million into our India franchise. Currently, our Tier-I capital is $350 million and our Tier-II capital $125 million. Our capital is more than adequate to maintain the growth trajectory at a high rate," Mr Ahuja said.

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