Catching up trend to "reward' shareholders in the course of financial year, Bank of India has declared interim dividend of Rs 2 per share of Rs 10 each. This will entail an outgo, including tax of over Rs 110 crore. | |
| The board declared an interim dividend of 20 per cent for 2006-07. The decision for interim dividend should be seen in the context of similar action by some public sector banks, a senior bank official said. |
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| BoI will be in position to absorb the payout without any stress as revision in prime lending rates (twice since April 2006) have improved the interest income and margins. |
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| The bank, in its presentation to analysts, said its cost of funds rose to 4.32 per cent at end September 2006 over 2.95 per cent in September 2005. |
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| The yield on funds improved to 7.27 per cent from 6.52 per cent. Domestic net interest margin (NIM) has improved to 3.17 per cent at end of September 2006 as against 2.60 per cent a year ago. |
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| Vijaya Bank and Syndicate bank has declared 10 per cent and 15 per cent interim dividend, respectively, in last month and few more government-owned banks and corporates are thinking on this line (declare interim dividend), he said. |
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| BoI will have to shell out about Rs 97 crore for interim dividend on the paid up equity share capital of Rs 488.14 crore. The tax burden for dividend works out to over Rs 13 crore. |
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| The net worth (capital plus reserves) as on September 30, 2006 stood at Rs 4,998, up from Rs 4,577.2 crore at end of 2005-06. The bank had paid 30 per cent dividend in 2005-06 aggregating Rs 166.73 crore. |
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| The Mumbai-based bank's stock closed lower at Rs 207 on the Bombay Stock Exchange against Friday's close of Rs 208.35. The scrip has surged 16.9 per cent in the last one month to Rs 207 from Rs 177.05. |
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