Bank of India (BANKINDIA) Q4 97/98 earnings summary

Executive summary

• FY1997-98 net profit was ₹364.51 crore versus ₹360.02 crore; operating profit rose to ₹697.18 crore from ₹579.49 crore.

• Deposits grew 23.04% to ₹39,338.61 crore and advances grew 20.09% to ₹22,020.72 crore at March 31, 1998.

Financial highlights

• Interest earned was ₹3,935.80 crore versus ₹3,513.39 crore; other income was ₹579.95 crore versus ₹490.16 crore.

• Operating expenses rose 11.04% to ₹1,167 crore from ₹1,051 crore; provisions and contingencies totaled ₹332.67 crore versus ₹219.48 crore.

• Domestic deposits grew 19.55% and overseas deposits 39.02%; Indian advances rose 19.70% and overseas advances 21.29%.

Outlook and guidance

• Plans for 1998-99 included opening 26 additional specialized branches; 79 were operational at March-end 1998.

• Tier II capital plans included subordinated debt issuance in H1 1998-99; centralized banking software and BOINET infrastructure were under development.

• Bullion sales at additional centres and gold-related products were planned subject to regulatory approval; depository participant service was expected by end-July 1998.