Bank of In­dia Back in Profit Zone in June Quar­ter, Plans to Raise 8k-cr

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

Mum­bai: Bank of In­dia may have just turned around and is plan­ning to raise .₹ 8,000 crore in cap­i­tal to be ready to buy a bank as and when the gov­ern­ment sets in mo­tion the con­sol­i­da­tion process. The bank re­ported a net profit for the June quar­ter and said its ac­cre­tion of bad loans also slowed.

Its chief ex­ec­u­tive Din­a­bandhu Mo­ha­p­a­tra said that the re­cov­ery may gather pace in com­ing quar­ters un­less there is an ex­ter­nal en­vi­ron­ment in­duced sur­prise. “Bank is poised for growth from here on­wards if there are no big sur­prises,” Mo­ha­p­a­tra told re­porters.

The bank said its June quar­ter net profit was at .₹ 87.7 crore com­pared with a .₹ 741 crore loss a year ago. Re­cov­er­ies of bad loans and gains from trea­sury op­er­a­tions aided the prof­its. The bank has sought .₹ 2500 crore cap­i­tal from the gov­ern­ment this fis­cal and plans to raise the re­main­ing from the mar­ket.

It would also sell non-core as­sets , which in­cludes a 30% stake in STCI Fi­nance, a non-de­posit tak­ing fi­nance com­pany where it ex­pects to earn at least .₹ 626 crore. The bank's non­in­ter­est in­come-in­come which in­cludes fees from guar­an­tees and sell­ing in­sur­ance and mu­tual funds, and trea­sury op­er­a­tions, rose 30% to .₹ 1611 crore.

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