BoI profit surges 78%

BS 200 SCORECARD

Bank of India net profit rose 78 per cent to Rs 255 crore for the third quarter ended December 2006 against Rs 143 crore in the same period of 2005-06 on healthy growth in interest income and control over interest costs.

Total income for the reporting quarter rose to Rs 2,641.01 crore from Rs 2,063 crore. The interest income increased 29 per cent to Rs 2,319 crore. The interest expenses were up at Rs 1,459 crore from Rs 1,144 crore.

The global net interest margins improved to 3.18 per cent from 3.02 per cent a year ago. The cost of deposits rose to 4.40 per cent from 4.10 per cent. Its yield on advances improved to 8.43 per cent from 7.65 per cent. The yields on retail and small and medium enterprises loans helped get better margins, bank's chairman-managing director M Balachandran said.

The bank hiked its prime lending rate by 125 basis points in three tranches in 12 months. But, the rise in the term deposit rates was is less than total PLR hike. The interest rate are likely to harden further in near term depending on the market conditions (read strong competition for resources), he said.