The Hindu Business Line : Other income buoys BoB Q4 net

LOWER expenses, particularly on interest and rise in other incomes enabled Bank of Baroda to clock a 85.82 per cent growth in net profit for the quarter ended March 31, 2003 at Rs 198.36 crore as compared to Rs 106.75 crore in the corresponding period in the previous year.

The bank has declared a dividend of 60 per cent, subject to the approval of RBI. This includes the 20 per cent interim dividend paid earlier during the year. The dividend payout will work out to Rs 180 crore for the bank.

The board of directors has also approved a proposal to return Rs 91.90 crore to the Union Government, against recapitalisation bonds.

Addressing a press conference here today, Mr P.S. Shenoy, Chairman and Managing Director, BoB, said, with the return of capital, the Government's holding would come down to 51 per cent, from the present 67 per cent.

Announcing the results, Mr Shenoy said the bank expected a 20 per cent growth in the current fiscal. There will be increased focus on the retail segment. He said the bank planned to distribute 25 per cent of the net profit to shareholders every year. It hoped to bring down the net NPA to 2 per cent in 2003-04.

Total income for the quarter ended March 31, 2003, was at Rs 1,852.16 crore (Rs 1,840.06 crore). Other income (including profit on sale of investments) during the quarter was at Rs 392.15 crore (Rs 320.85 crore).

Total expenditure was at Rs 1,432.48 crore (Rs 1,466.10 crore). Total interest expenses came down to Rs 961.34 crore (Rs 1,069.81 crore)

The ratio of net NPAs to net advances is 3.72 per cent (4.98 per cent). The bank has made cash recoveries amounting to Rs 482 crore during this period.

For the financial year ended March 31, 2003, the bank recorded a net profit of Rs 772.78 crore (Rs 545.93 crore).

The capital adequacy ratio of the bank rose to 12.65 per cent (11.32 per cent)

The bank's domestic deposits amounted to Rs 59,400 crore (Rs 54,500 crore). Domestic advances went up to Rs 28,914 crore (Rs 28,115 crore).

The cost of deposits has come down to 5.97 per cent (6.65 per cent).

Responding to queries on the sidelines of the conference, Mr Shenoy said, there was scope for a further 25-50 basis point cut in deposit rates and the bank was examining the issue.

The BoB stock closed at Rs 125.50 on the Bombay Stock Exchange today.

Housing arm to be merged

BANK of Baroda is likely to merge its subsidiary BoB Housing Finance with it within a year.

Speaking to press persons here today, Mr Anil K. Khandelwal, Executive Director, Bank of Baroda, said: "BoB Housing has undergone a lot of financial restructuring, but its cost of borrowings continue to remain unsustainably high."

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