Recent reports said that Bank of India is planning to raise its Tier I capital, either through a follow-on public issue or a rights issue this fiscal. The bank has planned for the rise in TIER I capital in order to maintain its Capital Adequacy Ratio at 13 per cent and Tier I capital at 8.5 per cent. The bank has also recorded 15 % increase in its net profit.
According to Mr. Alok Misra, Chairman and Managing Director of the bank has decided for a call on the amount to be raised and the timing of the issue as and when required.
He added saying that the profit growth of the bank was muted due to higher employee costs arising from provision towards pension liabilities, although provisions on account of non-performing assets declined.
He said that the net interest income of the bank for the quarter went up by 49 per cent to Rs 2,307 crore. NIM had increased to 2.94 per cent from 2.57 per cent. He added saying that the bank has made a huge provision of Rs 980 crore towards employee benefits in the fourth quarter, against about Rs 180 crore last year.
He said that the bank was looking for growth of 21 per cent in credit and 20 per cent in deposits in the year 2011-12 fiscal.The individual services of the bank include bank deposits, international banking, education loans, home loan, personal loan etc.