3 foreign banks back in black in FY06

The Indian operations of three foreign banks "� The Bank of Nova Scotia, Calyon Bank and Abu Dhabi Commercial Bank "� have clawed back into the black in 2005-06, after reporting losses in 2004-05.

Canada's Scotiabank reported a net profit of Rs 31.67 crore in the last financial year against a loss of Rs 11.7 crore in 2004-05.

The bank's income increased 10.36 per cent to Rs 232.7 crore from Rs 210.8 crore a year earlier, while expenditure decreased 9.69 per cent to Rs 201.07 crore from Rs 222.65 crore a year earlier.

A decline in operating expenses helped Scotiabank report profits in 2005-06. Its net NPAs (non-performing assets) slumped 61.33 per cent to Rs 24.4 crore from Rs 63.3 crore in 2004-05.

French bank Calyon Bank, engaged in corporate and investment banking in India, also posted a net profit of Rs 76.1 crore in 2005-06 after a loss of Rs 15.7 crore in 2004-05. It registered income of Rs 236.9 crore in the financial year 2006, up from Rs 139.5 crore in 2004-05.

While interest income that Calyon Bank earned in the last financial year stood at Rs 129.8 crore, its expenditure rose 3.52 per cent to Rs 160.7 crore in 2005-06. But its NPAs dropped to Rs 1.46 crore from Rs 2.06 crore in 2004-05.

Abu Dhabi Commercial Bank posted a net profit of Rs 4.5 crore in 2005-06 after recording a loss of Rs 50.20 crore in 2004-05, despite a decrease in income to Rs 121.3 crore from 190.2 crore in 2004-05. The bank's expenditure declined 51.44 per cent to Rs 116.75 crore in 2004-05.