BoB net shoots up 66

MUMBAI, JUNE 19: Bank of Baroda8217;s BoB net profit zoomed up by 66 per cent from Rs 275.53 crore to Rs 458.73 crore in 1997-98. Addressing a press conference here on Friday, BoB chairman and managing director K Kannan said the bank8217;s deposits increased by Rs 6,958 crore 21.63 per cent and advances by Rs 3,272 crore 19.79 per cent during 1997-98.

The flow of resources to the corporate sector through advances and investments in bonds, debentures, equity and commercial paper has increased by 24 per cent, Kannan added. The bank8217;s capital adequacy had gone up from 11.8 per cent in 1996-97 to 12.05 per cent in 1997-98, with tier-I capital being nine per cent. Net non-performing assets NPAs were down to 6.60 per cent from 7.53 per cent in 1996-97. Last year the bank8217;s NPA exceeded Rs 1000 crore and the figure in absolute terms continues to be high.

The total credit has gone up by Rs 3272 crore 19.79 per cent and reached a level of Rs 19803.49 crore. The increased profitability has been due to the renewedemphasis on treasury operations.

BoB has marked to market 100 per cent of its government securities against the requirement of 60 per cent, taking advantage of the surplus of Rs 259 crore generated because of the lower benchmark yield determined by Reserve Bank of India for the year.

Kannan said BoB made prudential provisions in respect of leave encashment, contribution to pension fund and has also fully written off the unamortised public issue expenses, but for which the net profit would have been higher by Rs 92.13 crore.