Bank of India posts 90% jump in Q3 profit on lower provisions
Premium- Bank of India's total provisions were down 81% y-o-y to ₹335 crore. Its net interest income stood at ₹3,408 crore, down 9% from the same period last year
Mumbai: Public sector lender Bank of India (BoI) on Friday reported a net profit of ₹1,027 crore in the three months through December, up 90% on a year-on-year (y-o-y) basis, owing to lower provisions.
Its total provisions were down 81% y-o-y to ₹335 crore. Its net interest income (NII) or the difference between interested earned and expended, stood at ₹3,408 crore, down 9% from the same period last year. The bank’s net interest margin (NIM), a key indicator of profitability, was down 15 basis points (bps) on a sequential basis.
“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. We have made a beginning and the growth in Q3 and Q4 will definitely to much better NII and NIM in Q4 and the whole fiscal," said AK Das, chief executive, Bank of India.
The bank witnessed an improvement in asset quality as gross non-performing assets (NPAs) as a percentage of total loans declined 279 bps y-o-y and 154 bps sequentially to 10.46% as on 31 December. Loans worth ₹1,845 crore slipped into NPA category in the December quarter, higher than ₹1,307 crore in the September quarter.
Bank of India reported 5.33% y-o-y rise in domestic advances to ₹3.82 trillion in Q3 FY22 and local deposits rose 1.7% y-o-y to ₹5.45 trillion in the same period.
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Its shares on BSE closed at ₹56.50 on Friday, down 3.34% from its previous close.
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