Bank of Baroda has registered a 66 per cent increase in net profit from Rs 276.53 crore to Rs 458.73 crore for 1997-98. The bank has proposed a 30 per cent dividend on the enhanced equity base of Rs 293.03 crore.
During the year, the flow of resources to the commercial sector has grown by 23 per cent, or by Rs 3,883 crore. Total credit was higher by Rs 6,958 crore or 19.79 per cent. The bank showed a deposit growth of 21.5 per cent in savings deposits, while current account deposits had gone down, said K C Chakrabarty, deputy general manager, resource management, presenting the bank's results here. Global deposits of the bank increased by Rs 6,958 crore or 21.63 per cent. Interest income increased from Rs 3,761.75 crore to RS 4170.91 crore, while other income grew from Rs 458.64 crore to Rs 543.28 crore. On the expenditure side, the interest expenditure grew from Rs 2,551.80 crore to Rs 2,837.52 crore, while operational expenses were higher at Rs 1,070.63 crore.
Provisions and contingencies were lower at Rs 347.31 crore, compared with Rs 499.90 crore in the previous year. Income from investments, better resources management and treasury operations had compensated for a decline in income from traditional areas, said Chakrabarty.
The bank has reduced its net non-performing assets levels from 7.52 per cent to 6.60 per cent, while its capital adequacy ratio has improved marginally from 11.8 per cent to 12.05 per cent.
Total investments showed a growth of 22.25 per cent, and stood at Rs 13,359 crore for the year. Profits on account of investments was around Rs 270 crore.
For the year 1997-98, the bank has decided to mark to market 100 per cent of its portfolio. Of the excess provisions of Rs 259 crore made against depreciation, tax for Rs 90 crore has been paid and Rs 160 crore passed through the P&L account to statutory and capital reserves.
The bank's balance sheet grew by 22 per cent, from Rs 37,639.77 core to Rs 45,841.87 crore. Its earnings per share was higher at Rs 15.65, compared to Rs 10.87.
Stricter accounting norms with respect to contribution to pension fund, leave encashment and write off of unamortised issue expenses has resulted in profits being lowered by Rs 92.13 crore, said K Kannan, chairman and managing director of the bank. "The basic aim this year has been to strengthen the financials of the bank for which more stringent norms have been followed," he said.
In the first quarter of this year, the bank had witnessed a pick up in the advances front, especially in infrastructure. Disbursements in the sectors of power, ports, roads and bridges have especially risen, added Kannan.
