The Bank's core operating profit (excluding trading profit) rose by 32.24 per cent to Rs 760.97 crore in FY11 from Rs 575.43 crore in FY10, while the operating profit for the year ended March 2011 increased by 4.97 per cent to Rs 855 crore, from Rs 815.00 crore for the year ended March 2010.
The Bank was able to achieve net profit of Rs 330.38 crore for FY 11 in spite of providing Rs 493.50 crore under Accounting Standard AS-15 for employee benefit, BOM's Chairman and Managing Director, A S Bhattacharya said in a statement here.
Bhattacharya attributed the main reasons for the restrictions in profits to factors such as provision of 5 per cent on substandard advances over the regulatory minimum provision of 10 per cent, depreciation of Rs 136.38 crore on investment, and decrease in trading profits. Had the higher provision under AS-15 for the employee benefits not been made, the operating profit would have been Rs 1,331 crore, he said.
The increase in profit restricted to 4.97 per cent was mainly due to provision made towards employee benefits under AS-15, Rs 493.50 crore, he said.