BoB Q4 net rises 12.5%
The public sector bank's total income rose 26.5 per cent to Rs 3,885.7 crore. Its net interest income for the reporting quarter was flat at Rs 1,028.5 crore compared to Rs 1,053 crore in the corresponding period last year.
Other income, including commissions and fees, rose 23.56 per cent to Rs 554.63 crore, and the treasury income shot up from Rs 27 crore to Rs 81 crore in the fourth quarter of 2007-08.
The bank made additional provisions of Rs 80 crore for mark-to-market losses on credit linked notes (Rs 50 crore) and corporate bonds in its overseas book.
The value of the notes is nearly Rs 1,276 crore. The total provisions made during 2007-08 stood at Rs 207 crore.
"The net interest income has been almost flat in the fourth quarter as there was a reduction in PLR. Therefore, we hope to moderate the overall yield and costs." BoB chairman and managing director M D Mallya said.
The board recommended a dividend of 80 per cent for the financial year 2007-2008. It had 60 per cent in 2006-2007.
The bank will renegotiate the interest rate for loans, which have been extended at rates below PLR.
Deposits rose by 21.7 per cent to Rs 1,52,034 crore.