BankAm net profit up 80% to Rs 144 cr

Bank of America today reported 80 per cent year-on-year rise in net profit from its Indian operations in 2005-06 at Rs 144.6 crore on the back of robust growth in non-interest income and lower costs. Net profit for 2004-05 stood at 80.5 crore for 2004-05.

Net revenues during reporting the year increased by 60 per cent to Rs 398.9 crore from Rs 248.3 crore. Net interest revenue improved by 38 per cent at Rs 179.4 crore from Rs 129.6 crore in 2004-05 owing to higher loan portfolio.

There was a significant increase in the non interest revenue by 85 per cent at Rs 219.5 crore in 2005-06 from Rs 118.7 crore in the last year.

The growth in non-interest income was driven by revenues from offerings such as risk management and hedging services and greater revenue income, managing director and chief executive (India) Vishwavir Ahuja said.

BOA, a wholesale bank focusing on corporate business, saw its asset base grow from Rs 5,492 crore in 2004-05 to Rs 5,992.7 crore in 2005-06. Deposits also grew by 10 per cent to Rs 2,300 crore.

Return on assets improved to 2.4 per cent compared to 1.5 per cent last year. The bank reported nil non performing assets.

The bank is aggressively looking at opportunities in acquiring the distress assets from the financial institutions and the banks as have the experience and the skill to restructure and turnaround NPAs.

Ahuja said, "The bank will deepen its engagement in cross-border investment banking and would focus on tech and telecom , health care and pharma, natural resources and chemicals and the general industries."