During October-December 2012, the net profit of state-run Bank of India rose 12 per cent to Rs 803 crore from Rs 716 crore in the year-ago period.
The bank said it could not achieve a higher growth in net profit because of rise in provisioning and modest growth in advances.
The bank witnessed 32 per cent rise in provisioning to Rs 916 crore from Rs 693 crore dragging the profit down. During the quarter, net advances grew by 20 per cent, while deposits grew slower at 14 per cent.
But the bank benefited from decline in tax expenses to Rs 137 crore from Rs 323 crore. Net interest income (difference between interest earned and expended) rose 12 per cent to Rs 2,308 crore from Rs 2,067 crore.
Major advances growth was on account of loans to gems and jewellery and construction segment,” said VR Iyer, Chairman and Managing Director, Bank of India.
During the quarter under consideration, the bank’s restructured book stood at Rs 2,206 crore of which textile constituted 40 per cent, while steel was 10 per cent. While aviation and infrastructure contributed to the total restructured book at Rs 15,853 crore as on December 31, 2012, Iyer added.
The percentage of net NPAs was also higher at 1.97 per cent compared with 1.78 per cent as at the end of December 31, 2011.
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