Lower treasury income and increase in bad loans pulled down Bank of India's net profit BY 53 per cent to Rs 405 crore for the quarter ended December 31, 2009, against Rs 872 crore in the same period of the previous fiscal.
Within non-interest income, profit from sale of securities fell 68 per cent to Rs 137 crore (Rs 435 crore) and profit from exchange transactions also fell 68 per cent to Rs 76 crore (Rs 237 crore).
Cost of deposits fell to 5.26 per cent (6.11 per cent). The bank is looking to increase the share of low cost CASA (current account savings account) deposits to 35 per cent by the end of this fiscal.
In the third quarter, the bank added over 22 lakh customers and the target is to take the total number of customers from 3.4 crore to 4 crore by March 2010.
The fresh additions to non-performing assets or slippages in the December-ended quarter were about Rs 650 crore.
The provisions for NPAs more than doubled to Rs 446 crore (Rs 207 crore). The target is to bring down net NPA levels to less than 1 per cent by March 2010.
The bank has about Rs 30,000-35,000 crore worth unavailed sanctions, of which Rs 13,000-14,000 crore are from the infrastructure sector.
In the third quarter, the credit growth was Rs 6,750 crore. In the fourth quarter, credit growth is likely to be around Rs 10,000 crore.
For the current fiscal, the bank is targeting 15 per cent growth in credit and is planning to recruit 3,950 staff next fiscal, which will include 1,700 officers and 2,250 clerks and specialists.
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