State-owned lender Bank of India on Wednesday reported massive growth of 412 per cent in its net profit at Rs 541 crore for the third quarter ended December 31, 2020, compared to Rs 106 crore in the same period last year, on the back of lower provisions and improvement in asset quality. On sequential basis, the profit rose by 2.84 per cent from Rs 526 crore in September quarter of 2020.
The public sector lender's net interest income (NII), the difference between interest earned and interest expended, fell by 9.19 per cent YoY to Rs 3,740 crore during Q3 FY21 from Rs 4,118 crore in Q3FY20.
Non-interest income (comprising of fee, services and other income) declined by 17.39 per cent to Rs 2,068 crore during December quarter of 2020 from Rs 2,503 crore in in the year ago period.
The bank's operating profit for the October-December quarter dropped by 31.42 per cent to Rs 2,836 crore from Rs 4,135 crore in Q3 FY20.
Provision and contingencies halved to Rs 1,980.10 crore in December quarter of this fiscal as against Rs 4,015.20 crore in the same period a year ago. Provisions of non-performing assets (NPA) declined by 83.49 per cent YoY to Rs 623 crore.
On asset quality front, gross non-performing assets (NPAs) ratio as a percentage of gross advances declined to 13.25 per cent from 16.25 per cent in Q3 FY20. The net NPA ratio fell to 2.46 per cent in Q3 FY21, against 5.97 per cent in the year-ago quarter.
In absolute terms, the bank's gross NPA stood at Rs 54,997 crore and net NPA stood at Rs 9,077 crore as on December 31, 2020.
Capital adequacy ratio of Bank of India as per Basel III, as on December 31, 2020, was 12.51 per cent and Tier I ratio was 9.44 per cent. During the quarter, the bank raised Rs 750 crore Basel-III compliant AT-1 bonds in January 2021.
Meanwhile, shares of Bank of India ended at Rs 60.80 apiece, up 2.7 per cent, against previous closing price of Rs 59.20 on the BSE.