BoI net rises 16% at Rs 228.55 crore

Bank of India (BoI) has reported a 16 per cent increase in its third quarter net profit at Rs 228.55 crore as against Rs 196.89 crore in the corresponding quarter last year.

In the nine-months period ended December 31, 2003, the bank's net profit was up by 16 per cent to Rs 659.22 crore (Rs 568.47 crore in the year-ago period). The bank's board has declared an interim dividend of 20 per cent, subject to Reserve Bank of India's approval.

"For an old organisation of our size we are growing at a fair clip. Our profitability growth this fiscal will be in line with the 20 per cent growth projections we made at the beginning of the current fiscal," said M Venugopalan, chairman and managing director, Bank of India, said.

In the reporting quarter, interest earned as well as other income were almost flat at Rs 1483.20 crore (Rs 1468.25 crore) and Rs 378.85 crore (Rs 379.47 crore), respectively. Interest expended declined by eight per cent to Rs 887.53 crore (Rs 963.47 crore) and operating expenses marginally crept up to Rs 436.07 crore (Rs 417.24 crore).

According the CMD, between September and January first week, the bank disbursed Rs 2,800 crore in non-food credit. Retail loans accounted for 42 per cent of the incremental growth in credit in the current fiscal. "We expect to disburse Rs 2,000 crore more in the remaining two months of the financial year," said Venugopalan.

The amount of gross NPAs was at Rs 3974.35 crore as of December-end 2003 as against Rs 3901.42 crore as of December-end 2002. The amount of net NPAs was at Rs 2176.69 crore as of December-end 2003 as against Rs 2138.92 crore as of December-end 2002.