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