Bank of India profit jumps 79 per cent

CORPORATE SCORECARD

Bank of India (BoI) reported a 79.39 per cent rise in net profit to Rs 762.8 crore for the quarter ended September 30, 2008, compared to Rs 425.2 crore in the corresponding quarter last year on improvement in margins and non-interest income.

The total income of the bank for the quarter stood at Rs 4,612.2 crore, up 31.66 per cent compared to Rs 3,503.6 crore a year ago. The net interest income was up by 38.23 per cent Rs 1,363 crore while net interest margin of the bank improved to 3.20 per cent from 3.04 per cent.The non-interest income rose by 23.11 per cent to Rs 650 crore from Rs 528 crore.

 

The total business grew by 30.24 per cent to Rs 2,93,560 crore against Rs 2,25,406 crore reported a year ago. The deposits registered a 26.74 per cent growth to Rs 1,37,258 crore from Rs 1,03,960 crore and the advances were up by 34.96 per cent to Rs 1,29,314 crore from Rs 95,816 crore.

Net NPA of the bank stood at 0.48 per cent (Rs 608 crore) compared to 0.75 per cent (Rs 714 crore) a year ago.

Capital adequacy ratio of the bank stood at 12.26 per cent.
  

BOL Q2 NUMBERSS AT A GLANCE
Operating profit (Rs cr)	1,215	44.64%
Net profit (Rs)	763	79.53%
Net interest income	1,363	38.23%
Net interest margin (%)	3.2	from 3.04
Other income	650	23.11%
EPS (Rs)*	14.53	from 8.73
Book value (Rs)	189.24	from 127.92
Return on assets (%)	1.57	from 1.15
Net NPAs (%)	0.48	from 0.75
* Not annualised    Note: Per cent change over Q2FY08

Commenting on the impact of the global financial turmoil, T S Narayanasami, chairman and managing director, Bank of India, said, “BOI has no exposure to the US subprime market and it has fully factored write-downs in investments consequent to recent global financial turmoil and provided for entire diminution in their value upon marking them to market.”

Accordingly the bank has made full provisions for its Lehman Brothers exposure to the tune of Rs 108.60 crore, which included investments in floating rates notes, CLN with underlying credit risk on highly-rated Indian corporate and also derivative transactions with their group company.

Another provisioning to the tune of Rs 53.69 crore has also been made for the CLN/bonds exposure.

However, the net profit from the overseas operations of the bank declined by 60.24 per cent to from Rs 83 crore to Rs 33 crore. This was on the account of 193.88 per cent increase in provisioning to the tune of Rs 144 crore compared to Rs 49 crore, a year ago.

Consequently, the bank is planning to moderate its credit growth in the overseas market, which in the quarter under review grew by 32.93 per cent to 28,101 crore from Rs 21,139 crore last year.