BoI net doubles

Mumbai-based Bank of India's net profit doubled in the second quarter of 2007-08 on the back of a robust growth in fee income and advances and reduction in operating expenses.

The net profit stood at Rs 425 crore in the quarter ended September 30 from Rs 212 crore a year earlier.

The bank's net interest income in the September quarter rose by 16 per cent to Rs 986 crore from Rs 849 crore a year earlier, driven by 27.6 per cent growth in advances to Rs 95,816 crore. The bank's loan book has grown by 11.34 per cent since April, while its deposit base rose by 8.5 per cent.

The non-interest income in the current quarter increased by 50 per cent to Rs 528 crore from Rs 353 crore a year earlier. Of this, the treasury income stood at Rs 191 crore, rising 112 per cent.

The bank's operating fell by 6.8 per cent to Rs 674 crore during the period under consideration from Rs 724 crore a year earlier.

The bank's net interest margin (NIM) for the September quarter fell to 3.04 per cent from 3.09 per cent a year earlier, as cost of deposits rose 25.73 per cent to 5.53 per cent from 4.4 per cent earlier. The yield on advances grew 12.74 per cent to 9.99 per cent from 8.86 per cent a year earlier.