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Sunday, July 29, 2012

Bank of India net soars 71% on lower provisioning

Lower provisioning helped Bank of India report a 71 per cent jump in net profit at Rs 887 crore in April-June period compared with Rs 517.5 crore in the year ago period.

Total provisions during the quarter declined to Rs 786 crore from Rs 878 crore.

However, provision for NPAs increased by 47 per cent to Rs 569 crore from Rs 388 crore. In addition, the bank received a write-back worth Rs 136 crore on investments.

Net interest income (difference between interest earned and interest expended) grew slower by 11 per cent to Rs 2,044 crore from Rs 1,841 crore in the corresponding quarter last year. Non-interest income grew by 27 per cent to Rs 841 crore (from Rs 660 crore).

Net interest margins reduced to 2.27 per cent from 2.86 per cent on higher restructuring, said Mr Alok Misra, Chairman and Managing Director.

The restructured assets during the quarter stood at Rs 4,074 crore of which about Rs 2,956 crore was to aviation and Rs 446 crore to infrastructure. Net NPAs for the bank rose to Rs 4,413 crore from Rs 3,656 crore in the previous quarter. Net NPAs rose by 22 basis points sequentially and 42 basis points year-on-year at 1.69 per cent in the quarter.

The public sector bank plans to raise about Rs 3,000 crore in two years under Basel II norms, said Mr Misra.


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