Bank of India (BoI) has reported a 47 per cent drop in net profit in the fourth quarter ended March due to a sharp rise in provisions for bad loans. The bank’s net profit fell to Rs 428 crore as against Rs 810 crore in the same quarter a year ago.
The bank’s non-tax provisions more than doubled to Rs 808.97 crore as against Rs 384.63 crore in January-March 2009. Its gross non-performing assets grew Rs 694 crore in January-March 2010 to Rs 4,882.65 crore, from Rs 4,188.64 crore at December 2009.
Chairman and Managing Director Alok K Misra said the drop in profit was due to higher provisions. The rise in bad loans was linked to a weak performance in export-related, pharma, infrastructure and aviation sectors.
Total income fell to Rs 5,248.22 crore as against Rs 5,278.47 crore in the fourth quarter of 2008-09.
The bank’s net profit for 2009-10 fell to Rs 1,741.07 crore from Rs 3007.35 crore in 2008-09. Its total income for the year rose marginally to Rs 20,494.62 crore from Rs 19,399.22 crore last year.
Total advances rose 18 per cent to Rs 1,71,317 crore in 2009-10 while deposits were up 21 per cent to Rs 2,29,762 crore.
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Export Import Bank of India has posted an eight per cent rise in net profit to Rs 513.4 crore for financial year ended March 2010 as against Rs 477.41 crore in the year ended March 2009.
The bank’s income fell to Rs 2,988.27 crore from Rs 3,449.36 crore in 2008-09, impacted by slow credit off-take and falling interest rates.
Loan assets rose 14 per cent to Rs 39,371 crore at the end of March from Rs 34,505 crore a year ago. Outstanding borrowings grew to Rs 40,508 crore from Rs 37,202 crore a year ago.