Banque Nationale de Paris (BNP) has posted a 11.39 per cent decline in the net profit for the year 1999-2000 at Rs 39.73 crore against Rs 44.84 crore in 1998-99.
The bank's interest earnings rose 16.5 per cent to Rs 219 crore from Rs 187.85 crore, while other income rose over 15 per cent to Rs 43.23 crore from Rs 37.54 crore.
The bank had taken a subordinate debt of $6 million from BNP Paris, in March 2000.
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Due to this loan, the capital adequacy ratio that was at 9.09 per cent the previous financial year now stands at 9.55 per cent.
The Tier-I capital adequacy ratio has decreased from 6.92 per cent to 6.25 per cent and the Tier-II capital adequacy ratio has increased from 2.17 per cent to 3.30 per cent. Interest income as a percentage of working funds is at 11.26 per cent from 11.87 per cent and non-interest income as a percentage of working funds is at 2.22 per cent as against 2.37 per cent.
Both these percentages have seen a decline over the last financial year. The operating profit as a percentage of working funds has decreased from 3.01 per cent to 2.66 per cent. Net profit as a percentage of net assets has gone down from 1.06 per cent to 0.94 per cent. The profit per employee has reduced from Rs 684 to Rs 625 per employee.
The non-performing advances constitute 0.08 per cent of net advances. The net non performing assets (NPAs) as of 31 March 2000 stood at Rs 5,700, after a provision for Rs 1,64,988 being deducted from the gross NPA. The provision for NPAs has been increased from Rs 1.79 crore to Rs 9.61 crore.
The bank has given considerable exposure to industries of the sensitive sector with nearly 6 per cent of loans given to sensitive sector. The capital markets, inclusive of individuals and share and stock brokers, were given Rs 1.81 crore. The real estate sector was given Rs 4.08 crore and the commodities sector was give Rs 0.4 crore as advances.