Bank of India reports 8.44 percent rise in net profit at Rs 95 crore
State-run Bank of India today reported an 8.44 percent rise in net profit at Rs 95 crore in the June quarter, helped by growth in interest income.
"We have done well this quarter and have come back to black. Growth in profits was on account of higher interest income, recovery from Bhushan Steel and reduction in costs," the bank's managing director and chief executive officer, Dinabandhu Mohapatra, told reporters here today.
The bank's global net interest margin (NIM) improved to 2.49 percent from 1.99 percent, while its domestic NIM stood at 3.05 percent, against 2.39 percent last year.
"Our NPAs have stabilized to a great extent and it would significantly come down in the second quarter," said Mohapatra.
The overseas advances, however, decreased to Rs 72,059 crore, from Rs 1,09,492 crore, on account of bank's plan to rationalise overseas operation as also due to the impact of RBI's restriction on buyer's credit, he said.
The bank has already closed two representative offices and Mohapatra said it is re-looking at the operations of seven to eight overseas offices.
On media reports that the RBI has given a list of accounts to banks to act on, Mohapatra denied of any such list but said the apex bank is examining books of all the banks as a regular practice.
"There is no list. Every year after March, RBI does a routine inspection of banks' books, wherein they examine various accounts. This is a routine examination of accounts which happens every year," he said.
The lender's scrip ended 8.75 percent down at Rs 94.35 apiece on the BSE today, against 0.30 percent rise in the benchmark.
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