The Hindu Business Line : Bank of India posts 51% growth in Q1 net

Bullish performance: Mr T.S. Narayanasami (left), CMD, Bank of India, with Mr K.R. Kamat, Executive Director, at a press conference in Mumbai on Wednesday. —

Our Bureau

Mumbai, July 25 Bank of India has registered a 51 per cent growth in Q1 net profit at Rs 315 crore, against Rs 209 crore in the corresponding quarter of the previous year.

Mr T.S. Narayanasami, Chairman and Managing Director, said that increase in both interest and non-interest income and higher non-performing assets (NPA) recoveries have boosted profits.

Net interest income increased 23.7 per cent to Rs 947 crore (Rs 765 crore). Non-interest income rose 23 per cent to Rs 381 crore (Rs 311 crore).

The bank’s net interest margin (domestic) went up from 2.95 per cent to 3.06 per cent. However, net interest margins of foreign businesses declined to 1.2 per cent from 1.3 per cent.

Announcing the results at a press conference, Mr Narayanasami said the drop in the net interest margin for foreign businesses had been due to the interest rate impact of the $325-million overseas loan the bank had raised last year.

Deposits grew 27.7 per cent to Rs 1,22,358 crore (Rs 95,814 crore), while advances increased 27.59 per cent to Rs 87,121 crore (Rs 68,283 crore). The cost of funds increased to 4.93 per cent (4.32 per cent) while the yield on advances also improved to 9.41 per cent (8.15 per cent).

The proportion of Current Account and Savings Account (CASA) to total deposits dropped to 38 per cent (40 per cent). Net NPAs dropped to 0.69 per cent (1.43 per cent). The CAR stood at 11.51 per cent (10.36 per cent).

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