Bank of India Q4 net profit up 7%

Bank of India Q4 net profit up 7%
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First Published: Wed, Apr 29 2009. 10 56 PM IST
Updated: Wed, Apr 29 2009. 10 56 PM IST
Mumbai: Bank of India reported a marginal 7% growth in its fourth quarter net profit.
The public sector bank, which has been able to post net profit growth in excess of 60% in the last six quarters, reported net profit of Rs810.37crore in the January-March, compared with Rs756.04 crore in the year ago quarter.
For the full year, the bank’s net profit grew 49.7% to Rs3,007 crore.
The bank’s fourth quarter net interest margin (NIM), or the gap between what it spends on deposits and earns on loans, a key measure of profitability, dropped to 2.98% from 3.24% a year ago. Net interest income for the quarter stood at Rs1,433 crore compared with Rs1,217 crore a year ago.
“In this environment it is difficult for a bank to continue performing high growth quarter after quarter, particularly when the base is so high,” said T.S. Narayasami, chairman and managing director of Bank of India.
“The bank has restructured 35,000 accounts worth Rs4,800 crore in the quarter. An additional Rs1,400 crore of restructuring will be done within 30 June,” Narayansami said.
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First Published: Wed, Apr 29 2009. 10 56 PM IST