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Informist, Monday, Nov. 11, 2024

 

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--Bank of India Jul-Sept net profit INR 23.74 bln vs INR 14.58 bln year ago 
--Bank of India gross NPA ratio 4.41% as on Sept 30 vs 4.62% qtr ago 
--Bank of India Jul-Sept total income INR 198.72 bln vs INR 166.59 bln year ago 
--Bank of India net NPA ratio 0.94% as on Sept 30 vs 0.99% qtr ago 
--Bank of India Basel III capital adequacy ratio 16.63% as on Sept 30 
--Bank of India Jul-Sept provisions INR 10.43 bln vs INR 8.18 bln year ago 
--Bank of India Jul-Sept NPA provisions INR 14.27 bln vs INR 6.78 bln 
--Bank of India provision coverage ratio 92.22% as on Sept 30 
--Bank of India global advances at INR 6.22 tln as on Sept 30, up 14.5% YoY 
--Bank of India Jul-Sept global fresh slippages INR 23.57 bln 
--Bank of India Jul-Sept global NII INR 59.86 bln, up 4% on year 
--Bank of India credit-deposit ratio 80.23% as on Sept 30 
--Bank of India Jul-Sept domestic NIM at 3.14% vs 3.42% qtr ago 
--Bank of India Jul-Sept global NIM at 2.82% vs 3.07% qtr ago 
--Bank of India current, savings account ratio 41.18% as on Sept 30 
--Bank of India Apr-Sept total income INR 381.12 bln vs INR 324.80 bln 
--Bank of India global deposits at INR 7.75 tln as on Sept 30, up 10.15% YoY 
--Bank of India Apr-Sept net profit INR 40.76 bln vs INR 30.10 bln year ago
 

 

By Kabir Sharma

 

MUMBAI – A sharp rise in other income and fall in tax outgo lifted Bank of India's bottom line by 63% for the quarter ended September, although the public sector lender's net interest margin fell sharply both sequentially and compared to a year ago.

 

The bank reported a net profit of INR 23.74 billion for Jul-Sept on the back of a 49% on year increase in non-interest income to INR 25.18 billion as profit from sale and revaluation of investments jumped nine-fold to INR 7.30 billion. Meanwhile, the tax outgo of the bank fell 51% to INR 7.31 billion.

 

However, growth in Bank of India's primary source of profit was weak, with net interest income up just 4% at INR 59.86 billion. The domestic net interest margin of the lender fell to 3.14% in Jul-Sept from 3.47% a year ago and 3.42% in Apr-Jun as cost of funds rose 13 basis points on quarter and 39 bps from last year to 4.94%.

 

Net interest income rose just 4?spite domestic advances rising 15.0% on year as on Sept. 30 at INR 5.21 trillion, with overseas advances 11.9% higher at INR 1.01 trillion. Within advances, retail and agricultural loans were both up around 21.5%, while credit to Micro, Small, and Medium Enterprises rose 15.4%.

 

On the liability front, domestic deposits of the bank rose 12.3% on year to INR 6.73 trillion as at the end of September, while overseas deposits declined 2.3% to INR 1.02 trillion. The current account, savings account ratio of the bank stood at 41.18% as on Sept. 30, down from 43.13% a year ago.

 

In terms of asset quality, Bank of India saw fresh slippages to the tune of INR 23.57 billion in Jul-Sept, up from INR 15.60 billion a year ago and INR 16.89 billion in Apr-Jun. This led to a doubling of provisions for bad and doubtful loans to INR 14.27 billion from INR 6.78 billion a year ago, although a reversal of INR 3.84 billion in the reporting quarter helped lower total provisions sequentially by 19%.

 

The gross non-performing assets ratio fell to 4.41% from 4.62% a quarter ago and 5.84% as on Sept. 30, 2023, with net NPAs down to 0.94% from 0.99% a quarter ago and 1.54% last year.

 

Shares of Bank of India ended 0.5% higher at INR 112.20 on the National Stock Exchange on Monday.  End

 

Edited by Ashish Shirke

 

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