NE BUSINESS BUREAU
MUMBAI, MAY 25
Leading public sector lender, Bank of India (BoI) on Tuesday reported a net profit of Rs 606 crore. During the Q4 of the financial year 2022, more than double its profit in the same period last year owing to higher net interest income and a decline in provisions, said A K Das, CEO.
The bank’s net interest income (NII) or the difference between interested earned and expended, stood at Rs 3,986 crore, up 36% from the same period last year. The bank’s domestic net interest margin (NIM), a key indicator of profitability, was up 39 basis points (bps) on a sequential basis. Its total provisions were down 4% y-o-y to Rs 1,541 crore.
The bank witnessed an improvement in asset quality as gross non-performing assets (NPAs) as a percentage of total loans declined 379 bps y-o-y and 48 bps sequentially to 9.98% as on 31 March. Loans worth Rs 1,502 crore slipped into NPA category in the March quarter, lower than Rs 1,760 crore in the December quarter.
Bank of India reported 8.73% y-o-y rise in domestic advances to Rs 3.94 trillion in Q4 FY22 and local deposits contracted 0.05% y-o-y to Rs 5.5 trillion in the same period. In FY23, the bank expects to achieve credit growth of 10-12%.
“For the entire last year, we sanctioned about more than Rs 70,000 crore (of corporate loans) but the availment was less at around Rs 29,000 crore. In our usual overdraft limits, the availment pattern has been around 68-69%,” said A K Das.
He also said that in FY23, apart from small businesses, mid-cap segments, corporates will receive greater focus, which will be aided by government initiatives such as the Rs 7.5-trillion capex plan, which will have multiplier effects and create new demand.
“We have got adequate capital to fund the corporate sector growth,” he added.
RAM (Retail, Agriculture and MSME) Advances grew by 15.70% YOY and the same constitute 54.97% of Advances.
Global Business increased by 4.56% YOY from Rs. 10,37,549 Cr in Mar’21 to Rs.10,84,910 Cr in Mar’22. As on 31.03.2022, Bank’s Capital Adequacy Ratio (CRAR) stood at 17.04% against 16.66 % in Dec’21 and 14.93% in Mar’21. (Vis-à-vis 11.5% mandate).
During the year, the Bank successfully raised QIP of Rs.2,550 crore and Tier-II Bonds of Rs.1,800 crore for augmenting capital base, the bank said in a release.
