Bank of India (BoI) has reported a 44 per cent increase in its net profit at Rs 194.43 crore in the second quarter ended September 30, 2002 against Rs 135.16 crore in the corresponding quarter in the previous year.
In the half year ended September 30, 2002, the bank reported a 43 per cent growth in its bottomline at Rs 371.58 crore against Rs 259.65 crore in the corresponding half in the previous year.
In the reporting Q2, interest earned edged up by 4 per cent to Rs 1,512.93 crore (Rs 1452.95 crore in Q2 of 2001-02) and other income, also referred to as non-interest income, was up by 37 per cent to Rs 356.08 crore (Rs 260.37 crore). Interest expended inched up by 2 per cent to Rs 990.32 crore (Rs 968.61 crore) and operating expenses rose by 14 per cent to Rs 414.42 crore (Rs 364.22 crore).
Other provisions and contingenices in the reporting Q2 was Rs 204.18 crore (Rs 193.77 crore. Net interest margin (spread) declined to 2.74 per cent as of September-end 2002 against 2.83 per cent as of March-end 2002.
BoI chairman and managing director, K V Krishnamurthy, said, increased non-interest income helped the bank to contain the decline in spread in a falling interest rate regime. He said the bank was on track to meet the net profit target of Rs 650 crore set for fiscal 2002-03.
Yield on advances was lower at 8.61 per cent as of September-end 2002 against 9.52 per cent as of March-end 2002. Yield on investments
was also down from 9.35 per cent as of March-end 2002 to 9.02 per cent as of September-end 2002. The bank
