Bank Of India Reports Two-Fold Profit In March Quarter

The Bank of India (BOI) has announced that it has registered 142 per cent Year-On-Year (YOY) jump in quarter ended March with net profit of INR 606 crore as compared to INR 250 crore in the same quarter a year ago.

The standalone net profit of public sector bank for FY22 was up 58 per cent YOY to INR 3,405 crore from INR 2,160 crore in FY21.

It has reported an increase in Net Interest Income (NII) by 35.77 per cent from INR 2,936 crore in Q4 FY21 to INR 3,986 crore in Q4 FY22. NII rose by 16.96 per cent sequentially.

Non-Interest Income increased from INR 6,842 crore in FY21 to INR 7,879 crore for FY22, with an increase of 15.15 per cent, the bank said in a statement.

On the asset front, gross Non-Performing Assets (NPAs) of the bank fell to 9.98 per cent as of March 2022 compared to 13.77 per cent in the year-ago period.

The bank said that its global business has increased by 4.56 per cent YOY from INR 10,37,549 crore in March’21 to INR 10,84,910 Cr in March’22.

“Global Deposits increased by 0.12 per cent  and stood at INR 6,27,896 crore and Global advances by 11.35 per cent YOY to reach at INR 4,57,014 crore,” the bank noted.

Non-Performing Assets (NPAs)

Net NPA of Bank of India during period under review declined by 19.66 per cent to INR 9,852 crore in March’22, which was at INR 12,262 crore a year ago. GNPA ratio also declined from 13.77 per cent.

Net NPA ratio of the Bank declined to 2.34 per cent in March’22 compared to 3.35 per cent in same period last year. Provision Coverage Ratio (PCR) stood at 87.76 per cent during period in review.

Capital Adequacy

As on March 2022, Bank of India’s Capital Adequacy Ratio (CRAR) stood at 17.04 per cent against 16.66 per cent in December’ 21 and 14.93 per cent in March’ 21.

The Common Equity Tier (CET-1) ratio stood at 14.02 per cent in March’ 22 against 13.16 per cent in December’ 21 and 11.51 per cent in March’21.

During the year, the Bank successfully raised Qualified Institutional Placement (QIP) of INR 2,550 crore and Tier-II Bonds of INR 1,800 crore for augmenting capital base.

Business

Global deposits (domestic and foreign) nudged up 0.12 per cent YOY to INR 6,27,896 crore. Global advances rose 11.35 per cent YOY to INR 4,57,014 crore.

Within domestic deposits, the proportion of low-cost current account and savings account deposits improved to 45.02 per cent as at March-end 2022.

Within domestic advances, which grew by 8.73 per cent YOY, agriculture advances were up 19.27 per cent; retail (18.54 per cent); MSME (9.52 per cent), and Government and Government Guaranteed Advances (5.34 per cent).

Meanwhile, Managing Director (MD) and Chief Executive Officer (CEO), BOI AK Das said that the bank is aiming at bad loan recoveries worth INR 12000 crore in this financial year that began on April 1

Speaking at the press conference he said, “For the current financial year, in a baseline scenario, we are aiming (recoveries) at about INR 12,000 crore.”

“Out of this, National Company Law Tribunal (NCLT) recoveries are expected to be around INR 4,500 crore, National Asset Reconstruction Company (NARCL) will be around INR 2,500 crore and the remaining will be through a normal recovery process,” Das added.

When asked if the bank will be concerned to lend to the steel sector following the government’s recent measures, ED Dasgupta said that a call to lend to companies will be taken on a ‘case-by-case basis.’

The government on May 21 had waived customs duty on the import of some raw materials, including coking coal and ferronickel. To improve availability, it hiked the duty on iron ore exports by up to 50 per cent and a few steel intermediaries by 15 per cent.