BNP Paribas claws back into the black

BNP Paribas has posted a net profit of Rs 14.76 crore for the year ended March 2005 as compared to a net loss of Rs 13.07 crore last year, ended March 2004. The net income has risen 11.6 per cent to Rs 218.46 crore to Rs 243.83 crore.

"Given the unaudited results up to July 05, we anticipate a steep increase of our profitability for FY 06," said Fréderic Amoudru, chief executive & country head, BNP Paribas.

The company's operating profit for the year was Rs 56.54 crore, a 60 per cent increase over the previous year's Rs 35.29 crore.

Deposits of the bank stood at Rs 1,673.72 crore while advances have gone up by 30.71 per cent "� from Rs 1,314.90 crore to Rs 1,718.76 crore. Its investment book has been reduced by 14 per cent "� from Rs 1001.42 crore to Rs 860.66 crore.

The bank has reduced its net non-performing assets (NPA) ratio from 2.70 per cent in March 2004 to 0.58 per cent in March 2005. It has a capital adequacy ratio of 9.41 per cent.

Its net interest income grew by 4.5 per cent to Rs 85.60 and fee income grew by 66 per cent "� from Rs 40.72 crore to Rs 67.61 crore. The gross interest income at Rs 176.22 crore was marginally down from last year's Rs 177.74 crore.

Similarly, gross interest expenses too declined by 5.44 per cent to Rs 90.63 crore for the year. The group has committed to injecting into its India branch extra capital of about $50 million for the current fiscal in addition to $45 million brought in last year.

"The globalisation of the Indian economy and the emergence of internationally competitive and acquisitive Indian groups enable a bank like ours to offer our Indian clients financing tools to grow and take advantage of global opportunities," its country head said.