Bank of India (BoI) on Friday announced a net profit of ₹1,027 crore in the last quarter through December, which was about 90% up on a year-on-year (YoY) basis, because of lower provisions.
Its total provisions fall about 81% YoY ending up at ₹335 crore. Its net interest income (NII) or the variation between interest earned and expended, got at ₹3,408 crore, which was 9% less than the same period last year. The bank’s net interest margin (NIM), a crucial pointer of profitability, was down 15 basis points (bps) on a sequential factor.
AK Das, the chief executive of Bank of India, said, “Much higher loan growth holds the key to a positive NII. From a credit-deposit ratio of 65%, we have reached over 70%; we have seen a 5.4% growth in advances compared to 1-2% growth in the previous two quarters too.” He also elaborated that the private lender have made an onset and the improvement in Q3 and Q4 will certainly too much better in NII and NIM in Q4 and the whole year.
The bank observed growth in asset quality as gross non-performing assets (NPAs) as a number of total loans decreased 279 bps YoY and 154 bps consecutively to 10.46% as of 31 December. Loans of about ₹1,845 crore slid into the NPA category in the December quarter, higher than ₹1,307 crore in the last quarter.
Bank of India witnessed a 5.33% YoY increase in domestic advances to ₹3.82 trillion in Q3 FY22 and regional deposits surged up to 1.7% YoY resulting in ₹5.45 trillion in the same quarter. Its shares on BSE shut at ₹56.50 on Friday, down 3.34% from its last closing.
