Bank of India, the country’s fifth-biggest public sector bank by market capitalization, reported a 91 per cent rise in net profit in the second quarter as it gave more loans and its net interest income and margins improved.
The Mumbai-headquartered lender said net profit rose to Rs 617 crore compared with Rs 323 crore in the corresponding period a year ago. The operating profit rose 14 per cent to Rs 1,380 crore despite challenges on the treasury front, said the bank.
The bank’s net interest income rose 26 per cent to Rs 1,776 crore from Rs 1,409 crore. The net interest margin rose to 2.81 per cent in the quarter ended September 30, from 2.57 per cent a year earlier.
“We had a lot of provisions last September. This year, there has been a decline in provisions and growth in operating profit,” Reuters cited Chairman and Managing Director A.K. Misra as saying. The net interest margin was expected to improve further to as much as 2.95 per cent in the year to March 2011, Misra added. The bank’s shares, which have gained 40 per cent this year, fell 2.4 per cent today to Rs 537.45. The bank’s advances, which grew 22.4 per cent during the quarter to Rs 144,696 crore, were expected to grow at 19-20 per cent and deposits at 20 per cent for the year, he said.
This is almost in line with the Reserve Bank of India’s projection of 20 per cent loan growth and 18 per cent deposit growth for the banking system. Gross non-performing assets as a percentage of loans rose to 2.64 per cent compared with 2.61 per cent a year ago.
The bank’s provisioning coverage ratio rose to 70 per cent, the level mandated by the Reserve Bank of India, compared with 65.5 in March this year.
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The bank said its CASA, or current account savings account, ratio rose to 33.48 per cent from 32.64 per cent in the previous quarter.
Indian Bank posts 12% rise in net
Indian Bank posted an 11.77 per cent rise in profit in the second quarter to Rs415.8 crore from Rs372 crore in the same period of the previous year. Total business rose to Rs1,67,890 crore from Rs1,33,987 crore in September 2009, an increase of 25.37 per cent. Net interest income was up 29.5 per cent to Rs983.2 crore.
Other income increased to Rs283.66 crore from Rs237.2 crore. Provisions were up at Rs132.96 crore from Rs29.28 crore. Gross non-performing assets (NPAs) declined to Rs903.91 crore from Rs988.36 crore in the first quarter.
| MIXED BAG PERFORMANCE IN QUARTER ENDED SEPTEMBER | ||||||||
| (Rs crore) | Bank of India | Indian Bank | Vijaya Bank | BoM | ||||
| Sep ’10 | % Chg* | Sep ’10 | % Chg* | Sep ’10 | % Chg* | Sep ’10 | % Chg* | |
| Interest earned | 5,156 | 14.90 | 2,276 | 20.30 | 1,403 | 4.90 | 1,308 | 13.40 |
| Other income | 585 | -13.50 | 284 | 0.40 | 118 | -1.50 | 118 | -21.30 |
| Total income | 5,740 | 11.10 | 2,559 | 17.70 | 1,521 | 4.30 | 1,426 | 9.40 |
| Interest expended | 3,380 | 9.70 | 1,292 | 9.70 | 916 | -5.90 | 847 | -3.50 |
| Net interest income | 1,776 | 26.10 | 983 | 37.80 | 487 | 33.60 | 461 | 67.20 |
| Net profit | 617 | 90.80 | 416 | 11.80 | 144 | 33.10 | 52 | -39.70 |
| *Over previous year; Data compiled by BS Research Bureau Source: Capitaline | ||||||||
Vijaya Bank profit up 33%
Vijaya Bank today reported a 33.08 per cent rise in net profit to Rs144.30 crore for the second quarter ended September 30. The growth was mainly on account of a 33.5 per cent year-on-ear increase in net interest income, which went up to Rs487.2 crore, and negligible provisioning.
BoM net falls 40 per cent
Heavy provisioning for bad loans pulled down the net profit of Bank of Maharashtra by 40 per cent to Rs52.3 crore for th quarter ended September 30, from Rs86.6 crore a year ago. Provisions jumped to Rs176 crore from Rs43 crore in the September 2009 quarter.