NE BUSINESS BUREAU
MUMBAI, JAN 19
Public sector lender Bank of India (BoI) reported a 20 per cent increase in third quarter net profit at Rs 1,151 crore on the back of robust growth in net interest income. The net profit came despite a sharp increase in provisions, including towards bad & doubtful assets and standard assets and others, and decline in non-interest income.
Net interest income (difference between interest earned and interest expended) rose 64 per cent year-on-year (y-o-y) to Rs 5,596 crore (Rs 3,408 crore in the year ago quarter).
In a virtual press meet, A K Das, MD & CEO, said, “We expect 11-12 per cent credit growth in the current year. Along with increase in size and yield of the credit portfolio, management of asset quality is also of significant importance
“We expect GNPA ratio to be contained below 7 percent (and NNPA below 1.5 percent)…We aim to maintain NIM between 3.25 percent and 3.50 percent, thus ensuring sustainable growth in profit.”
Watch the video of media interaction of our MD & CEO, Shri A.K. Das on CNBC TV18, sharing insights on Bank of India's Quarterly #FinancialResults of Q3 FY2023 #AmritMahotsav #BankofIndia #financialyear https://t.co/Tm7QvdNmJF
— Bank of India (@BankofIndia_IN) January 17, 2023
- Both the Gross NPA and Net NPA have reduced on absolute and percentage basis on YoY and QoQ basis.
- The bank recorded a 74 percent YoY jump in operating profit at Rs 3,652 crore
- We expect 11-12 per cent credit growth in the current year: AK Das, MD & CEO
- The bank expects recovery from a paper company: M Karthikeyan, ED
M Karthikeyan, Executive Director, said the bank expects recovery from a paper company (via the National Asset Reconstruction Company Ltd route) and a non-banking finance company (via the IBC process) in the current quarter.
The bank has demonstrated significant improvement in various important parameters during the third quarter. Operating Profit has jumped to Rs. 3,652 crore up by 74% YoY and by 8% sequentially. The Return on Assets (RoA) stood at 55 bps. The NIM% is reported at 3.28%, driven by the Domestic NIM% of 3.72%. The growth in profitability is mainly contributed by the growth in Advances, more particularly on the growth in RAM and corporate segments.
Presenting Bank of India's Financial Result Key Highlights at a glance for the Q3 FY 2022-23. We are thankful to all our customers and stakeholders for their unstinting support, always!#RelationshipBeyondBanking #AmritMahotsav pic.twitter.com/ar15gHXW9R
— Bank of India (@BankofIndia_IN) January 17, 2023
With better credit off take, considerable growth is witnessed in NIM%, which stood at 3.28% thereby improved by 101 bps YoY. Yield on Advances at 7.67%, increased by 46 bps sequentially and 65 bps YoY.
RAM Advances grew by 13.24% on YoY basis and it constitutes 54.14% of Gross Advances. CASA deposits domestic increased by 3.70% on YoY basis and the domestic CASA% is reported at 44.56% on Aggregate Deposits.
On the recovery front, bank took several steps which has brought down Gross NPA% to 7.66% with a significant decline by 280 bps on YoY basis and also reduced the Gross NPA on absolute number by Rs.6,875 crore on YoY basis. The Net NPA% has also declined and touched to 1.61%, down by 105 bps on YoY basis. Slippage Ratio stood at 0.27% declined by 20 bps YoY. Both the Gross NPA and Net NPA have reduced on absolute and percentage basis on YoY and QoQ basis.
Cost to Income Ratio (Global) improved on sequential basis to 48.03% (as on 31.12.2022) as against 48.10% (as on 30.09.2022) and 60.03% (as on 31.12.2021).
Universal, Super App in March
The bank is piloting a Universal App and Super App during the end of March this year, it was informed at the national press meet.
