Bank of India has recorded net profit up 15% in Q4

By | March 29, 2011

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.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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