MUMBAI, April 19: Bank of Baroda is likely to generate a surplus of Rs 270 crore on account of a lower yield to maturity (YTM) on government securities in the financial year 1997-98. The bank's profits will exceed its targets substantially in the previous financial year owing to improved performance of treasury operations, a bank release said.The bank is marking its entire investment portfolio to market, which is more than the Reserve Bank's prescribed limit of 70 per cent for 1998-99. The bank plans to credit the entire surplus amount (net of tax) to its capital reserve, which is to be considered as tier-II capital. This will enable the bank to strengthen its financial position and also hedge against any upward movement of YTM in future, the release said.
Chairman and managing director Kannan said the bank's global advances increased by Rs 3,268 crore (19.78 per cent), while its global deposits increased by Rs 6,650 crore (19.78 per cent) during the year ended March 31, 1998. The bank's domesticadvances grew by 20 per cent to Rs 3,100 crore, while deposits increased by Rs 5,700 crore to reach Rs 33,500 crore. This represents a 21 per cent jump.
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