Bank of India profit at Rs. 252 cr.

By Our Staff Correspondent

MUMBAI, JUNE 6. Bank of India has announced a net profit of Rs. 251.88 crores for the year ended March 2001 against Rs. 172.82 crores in the previous year. The directors have recommended a dividend of 15 per cent against 10 per cent in the previous year.

Total income was higher at Rs. 6,178.78 crores against Rs. 5,522.53 crores, including interest earned of Rs. 5,316.87 crores (Rs. 4,736.99 crores) and other income of Rs. 861.91 crores (Rs. 785.54 crores).

Interest expended was Rs. 3,663.03 crores (Rs. 3,443.14 crores). Operating expenses were Rs. 1,743.73 crores (Rs. 1,396.4 crores). The operating profit was higher at Rs. 772.02 crores against Rs. 682.99 crores. Other provisions and contingencies accounted for Rs. 454.08 crores (Rs. 433.03 crores). The provision for taxation was Rs. 66.06 crores (Rs. 77.14 crores). The company provided Rs. 330.13 crores for the voluntary retirement scheme.

During the year, the capital adequacy ratio improved to 12.23 per cent (10.57 per cent). The recovery of non-performing assets (NPA) was Rs. 1,038 crores. Thus, net non-performing assets have dropped to 6.7 per cent from 8.6 per cent.

Global deposits have increased to Rs. 51,679 crores, a growth of 8.24 per cent and global advances to Rs. 31,823 crores, (20.96 per cent). The overall business mix improved to Rs. 83,502 crores, up 12.76 per cent.

During the year, the bank successfully completed the implementation of VRS scheme for which 7,768 employees opted. The total cost of the VRS was around Rs. 855 crores. The bank has absorbed Rs. 330 crores in the current year and the balance will be absorbed in the next 3-4 years. Annual savings in wage bill on account of VRS is expected to be around Rs. 170 crores in 2001- 02. Also, a sabbatical leave scheme, allowing staff to avail themselves of five years, without pay and allowances has been introduced and one tier of regional office has been abolished for better administration and saving in costs.

Vijaya Bank

Vijaya Bank has recorded a higher net profit of Rs. 70.73 crores during the year ended March 31, 2001, against Rs. 52.84 crores, a rise of 33.9 per cent. The bank had declared a dividend of 11.88 per cent for the year.

The operating profit has increased to Rs. 247.23 crores from Rs. 159.77 crores. The bank has announced an extraordinary expenditure of Rs. 60.08 crores towards voluntary retirement scheme for the year. Mr. S. Gopalakrishnan, chairman and managing director, while announcing the results here, said 2,470 applications were accepted under the VRS scheme accounting for 17 per cent of the staff strength. The strength after the VRS was 12,080 personnel, he said. In the same period, staff productivity had increased by 16.4 per cent to Rs. 1.23 crores from Rs. 1.05 crores, he said. The bank would however recruit ``specialists, in areas such as IT, treasury, forex and risk management'', the CMD said.

The bank was yet to get the Reserve Bank of India's nod on its insurance venture; the RBI had asked that audited results be sent, which would be done shortly, Mr. Gopalakrishnan said.

The bank anticipated an expenditure of between Rs. 25 crores and 50 crores a year on computerisation over the next five years.

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