Bank of India net doubles to Rs 505 crore
Our Banking Bureau
21 May 2002

Mumbai: Bank of India has doubled its net profit for the financial year ended 31 March 2002 at Rs 505 crore from Rs 252 crore in the previous year.

Bank of India chairman and managing director K V Krishnamurthy attributes the improved performance to a number of factors, including reduction in operating costs, increase in volumes of the bank’s business and higher income from treasury operations.

The bank board has recommended a 25-per cent dividend as against 15 per cent in the previous year.

The total income of the bank was at Rs 6,711.95 crore (Rs 6,178.78 crore). The total expenditure was at Rs 5,299.89 crore (Rs 5,406.76 crore). The operating profit grew to Rs 1,412 crore (Rs 772 crore).

Gross non-performing assets (NPA) levels of the bank have declined to 9.37 per cent (10.38 per cent). The net NPA has declined to 6.02 per cent (6.73 per cent). The bank has transferred Rs 166 crore to the investment fluctuation reserve, making a total of Rs 242 crore.

During the year the bank returned equity capital of Rs 150.42 crore to the government. With this the central government’s holding in the bank reduces to 69.30 per cent from the previous 76.53 per cent.

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