Public sector lender Bank of India (BOI) has posted a near four-fold growth in profit before tax (PBT) at Rs 1,332.45 crore for the quarter ended June 2020 (Q1FY21) on a rise in other income and a decline in provisions and contingencies.
It had posted a PBT of Rs 359.3 crore in quarter ended June 2019 (Q1FY20).
Its net profit for the reporting quarter rose to Rs 843.6 crore from Rs 242.6 crore in Q1FY20.
The BOI stock was trading 1.91 per cent higher at Rs 48 a share on the BSE.
The lender's Net Interest Income (NII) grew almost flat year-on-year to Rs 3,481.1 crore in Q1FY21 from Rs 3,485.4 crore in Q1FY20. However, other income comprising fees, commissions etc rose to Rs 1,707.2 crore in Q1FY21 to Rs 1,194.7 crore in Q1FY20.
The bank has estimated the impact of such wage revision arrears amounting Rs 1,461.63 Crore approximately till June 30, 2020. It made additional provision of Rs 161.63 crore in Q1FY21.
The provisions (including for non-performing assets) and contingencies dipped to Rs 1,512.07 crore in Q1FY21 from Rs 1,911.18 crore in Q1FY20. The Mumbai-based lender made Covid-19-related provisions of Rs 620.30 crore in Q1FY21 for Special Mention Accounts (SMA) in which the moratorium was extended, BOI said in filing with BSE.
The bank has made total provisions of Rs 1,034.78 crore for the Covid-19 pandemic. The provisions are higher than what is required by the Reserve Bank of India’s (RBI) guidelines to cushion the balance sheet from the impact of pandemic.
The Provision Coverage Ratio (PCR) stood at 84.87 per cent in June 2020 (Q1FY21), up from 77.18 per cent in June 2019 (Q1FY20). The PCR was at 83.74 per cent at end of March 2020.
Bank of India’s asset quality profile improved during the reporting quarter. Its gross non-performing Assets (GNPAs) declined to 13.91 per cent in Q1FY21 from 16.5 per cent in Q1FY20. The GNPAs were at 14.78 per cent at end of March 2020.
The net NPAs declined to 3.58 per cent in June 2020 from 5.79 per cent in June 2019. The Net NPAs were at 3.88 per cent in Mach 2020.
The Capital Adequacy Ratio (CAR) stood at 12.76 per cent as on June 30, 2020.