Interest income lifts BoI net 69%

RESULTS CORNER

Robust growth in net interest income helped Bank of India (BoI) post a 69.35 per cent rise in its net profit at Rs 757 crore for the fourth quarter ended March 2008 over Rs 447 crore a year ago.

The bank has made a provision of $5 million for mark-to-market losses in the fourth quarter on overseas derivatives like credit-linked notes, which are a part of its international business portfolio.

The board has recommended a dividend of 40 per cent for 2007-08 as against 35 per cent in the previous year, BoI Chairman and Managing Director T S Narayansami told reporters on Wednesday. 

'Financial parameters for Q4 FY08
	Interest earned	Net profit
BoI	Rs 3,502 cr	Rs 757 cr
Y-o-Y	é33.88 %	é69.19 %
BoM	Rs 965 cr	Rs 56 cr
Y-o-Y	é23.83 %	ê25.61%
Dena Bank	Rs 739 cr	Rs 111 cr
Y-o-Y	é26.48 %	é153.40 %

The total income for the reporting quarter was Rs 4,154.86 crore, while it was Rs 3,128.99 crore in January-March 2007. The net interest income rose by 25.72 per cent to Rs 1,217 crore.

The other income comprising items like fees and commission in the fourth quarter rose at a slightly lower rate of 13.2 per cent to Rs 653 crore.

Deposits saw a 25 per cent year-on-year growth in 2007-08 at Rs 1,50,112 crore. The cost of deposits rose from 4.31 per cent (2006-07) to 5.23 per cent (2007-08).

Advances grew by 32.26 per cent to Rs 1,14,793 crore. Its yield on advances improved from 8.51 per cent to 9.34 per cent.