4369

Bank of India Q3 profit up 12% to Rs.804 crore

Bank of India says net profit for December quarter rose to Rs.803.48 crore from Rs.716.15 crore in the year ago
Comment E-mail Print Share
First Published: Mon, Jan 28 2013. 12 47 PM IST
The gross non-performing assets of the bank as a percentage of advances widened to 3.08% from 2.74%. Photo: Pradeep Gaur/Mint
The gross non-performing assets of the bank as a percentage of advances widened to 3.08% from 2.74%. Photo: Pradeep Gaur/Mint
Updated: Mon, Jan 28 2013. 05 22 PM IST
Mumbai: State-owned Bank of India on Monday reported a 12.2% rise in third-quarter net profit as bad-debt provisions expanded 32%.
Net profit rose to Rs.803.48 crore from Rs.716.15 crore a year ago and provisions rose to Rs.915.78 crore from Rs.693.07 crore. The gross non-performing assets of the bank as a percentage of advances widened to 3.08% from 2.74%.
Fresh debt accumulation, or slippages, in the December quarter was at Rs.1,221 crore but the lender managed to recover Rs.365 crore of its past bad debt. It also restructured Rs.2,034 crore of loans in the quarter, about half of which was related to a textile company.
Domestic net interest margin, or the difference between yields on advances and the cost of deposits, fell 2.80% from 2.91% in the year-ago quarter as yields on advances shrank to 11.58% from 11.93% a year ago. Cost of funds, though, increased from 6.68% to 6.77%. The corresponding global number fell to 2.36% from 2.55% a year ago. As much as 27% of its business comes from the overseas market.
Bank of India will earn net interest margin of about 3% domestically in the year to March, chairperson V.R. Iyer predicted on Monday.
Net interest income rose 11.61% to Rs.2,308 crore.
In the nine months to December, the bank’s loan book grew at a little more than 11% though it expects to achieve a credit growth of 16% for the full year, Iyer said in a conference call.
The Bank of India scrip fell 2.51% to Rs.355.25 on BSE while the benchmark index, Sensex, closed at 20103.35 points.
Comment E-mail Print Share
First Published: Mon, Jan 28 2013. 12 47 PM IST
blog comments powered by Disqus
  • Wed, Apr 16 2014. 06 11 PM
  • Wed, Apr 09 2014. 05 19 PM
Subscribe |  Contact Us  |  mint Code  |  Privacy policy  |  Terms of Use  |  Advertising  |  Mint Apps  |  About HT Media  |  Jobs
Contact Us
Copyright © 2014 HT Media All Rights Reserved