Financial Daily from THE HINDU group of publications
Saturday, Jul 30, 2005
Financial Daily from THE HINDU group of publications Saturday, Jul 30, 2005 |
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Money & Banking
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Financial Performance Corporate Results - Public Sector Banks BoB first-quarter net drops 46 pc Our Bureau
Mumbai , July 29 BANK of Baroda has posted a net profit of Rs 156.94 crore for the first quarter ended June 30, 2005, a decline of 46.44 per cent from Rs 292.99 crore in the same quarter last year due to depreciation on investments on account of shifting securities to `Held-To-Maturity' category, said a press release from the bank. Total income was at Rs 1,882.01 crore (Rs 1,923 crore) while net interest income at Rs 758.70 crore (Rs 683.04 crore). Other income also fell to Rs 208.77 crore (Rs 394.49 crore). Net NPAs as a per cent of total advances declined to 1.47 per cent (2.90 per cent). The capital adequacy ratio stands at 11.98 per cent (13.97 per cent) as of June 30, 2005 in spite of a sharp credit upturn. Provisions and contingencies increased to Rs 257.15 crore (Rs 162.15 crore) mainly on account of de-risking investment portfolio by shifting securities from `Available For Sale' to `Held To Maturity' category. The release said the bank would be shortly raising Tier II Bonds to the extent of Rs 1,000 crore to meet its capital needs arising out of asset expansion plans and also to meet with Basel II prescription for capital. It also has the approval of the Finance Ministry to tap the capital market with its follow on offer of equity. Following this, the Government's holding in the bank would be diluted from 66 per cent to 53 per cent, the release said. BoB is also in the process of initiating several other services such as selling insurance products, cross-selling by offering bouquet of products and online stock broking services. The bank is awaiting host country approval for opening a branch at Houston, US and an offshore branch in Singapore. It has received approval from the RBI for opening one full-fledged branch in Hong Kong, a representative office in Bangladesh, fully owned subsidiary in Canada, Trinidad and Tobago and New Zealand and branches in Maldives and Sri Lanka, the press release added.
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