Public sector lender Bank of India (BoI) today posted a jump of 70.41 per cent in its net profit for the third quarter ended December 31, 2008, to Rs 872.17 crore on the back of high treasury income and net interest income. The bank had posted a profit of Rs 511.89 crore in the corresponding period last year.
The bank’s treasury income for the quarter under review showed nearly five-fold increase to Rs 760.10 crore compared with Rs 160.27 crore registered a year ago.
Net interest income increased by 40.96 per cent to Rs 1,521 crore as against Rs 1,079 crore, while the interest expense stood at Rs 2,821.51 crore, up 36.20 per cent from Rs 2,071.65 crore.
The bank’s total income stood at Rs 5393.74 crore, up 45.57 per cent, as against Rs 3075.21 crore reported in the year-ago period.
| GOOD TIMES Performance for Q3 ended December 31 | |||
| In Rs crore | 2,007 | 2,008 | % growth |
| Total income | 3,705 | 5,394 | 45 |
| Net interest income | 1,079 | 1,521 | 41 |
| Non-interest income | 554 | 1,051 | 90 |
| Net profit | 512 | 872 | 70 |
| Net NPAs (%) | 0.62 | 0.52 | - |
Interest spreads of the bank in the October-December quarter moved up to 3.02 per cent from 2.73 per cent, despite cost of funds increasing to 5.59 per cent from 5.24 per cent in corresponding quarter last year. Similarly, the net interest margin (NIM) too went up to 3.40 per cent from 3.14 per cent.
“Last quarter, many oil companies had access to funds at 15-16 per cent due to which NIM went up to 3.40 per cent. This quarter, the situation has changed. Our target is to maintain a margin of 3 per cent,” BoI Chairman and Managing Director T S Narayanasami said .
The bank’s net non-performing assets improved to 0.52 per cent as against 0.62 per cent reported in the corresponding period last year. Total advances were 33 per cent higher to Rs 1,36,110 crore from Rs 1,02,339 crore, whereas total deposits rose 26.42 per cent to Rs 1,71,724 crore from Rs 1,35,835 crore on a year-on-year basis.
The bank made a provision of Rs 271.98 crore for the third quarter compared with Rs 231.37 crore made last year.
