Bank of India reports more than doubling of Q4 net profit
Premium- Its net interest income stood at Rs3,986 crore, up 36% from the same period last year
Public sector lender Bank of India (BoI) on Tuesday reported a net profit of ₹606 crore in the three months through March, more than double its profit in the same period last year owing to higher net interest income and a decline in provisions.
Its net interest income (NII) or the difference between interested earned and expended, stood at ₹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 ₹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 ₹1,502 crore slipped into NPA category in the March quarter, lower than ₹1,760 crore in the December quarter.
Bank of India reported 8.73% y-o-y rise in domestic advances to ₹3.94 trillion in Q4 FY22 and local deposits contracted 0.05% y-o-y to ₹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 ₹70,000 crore (of corporate loans) but the availment was less at around ₹29,000 crore. In our usual overdraft limits, the availment pattern has been around 68-69%," said A K Das, chief executive, Bank of India.
Das 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 ₹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 said.
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Its shares on BSE stood at ₹47.15 on Tuesday, up 1.51%% from its previous close.