 "Bank of India Q3 net up 90% to Rs 1,027 cr on sharp fall in provisions")
Bank of India’s net profit rose by 90 per cent year on year at Rs 1,027 crore for the third quarter ended December 2021 (Q3FY22) on sharp fall in provisions and contingencies.
The net profit was Rs 541 crore in Q3FY21 and Rs 1,051 crore in the second quarter ended September 2021 (Q2FY22).
Mumbai-based lender's stock closed 3.34 per cent lower at Rs 56.5 per share on BSE.
The bank's NII declined by 8.8 per cent to Rs 3,408 crore in Q3FY22 as against Rs 3,739 crore in Q3FY21. Sequentially, also NII was down 3.2 per cent with NII of Rs 3,523 crore in Q2FY22.
The net interest margins fell to 2.27 per cent in Q3Fy22 from 2.58 per cent in Q3Fy21 and 2.42 per cent in Q2Fy22.
The non-interest income fell by 3.26 per cent on YoY basis to Rs 1,835 crore in Q3FY22 from Rs 1,897 crore in Q3FY21. Sequentially, it declined by 14.1 per cent from Rs 2,136 crore in the quarter ended September 2021.
The provisions and contingencies were down sharply to Rs 343 crore in Q3FY22 from Rs 1,809 crore in Q3FY21 and also from Rs 893 crore in Q2FY22.
Its Gross NPAs declined to 10.46 per cent in December 2021 from 13.25 per cent in the year ago period. Sequentially, they declined from 12.2 per cent in September 2021. Bank expects to bring down GNPAs below 10 per cent by March 2022, said A K Das, managing director and chief executive, BOI.
The Net NPAs rose to 2.66 per cent in December 2021 from 2.46 per cent a year ago. Sequentially, they declined from 2.79 er cent in September 2021.
The provision coverage ratio moderated to 86.86 per cent at end of December 2021 from 89.32 per cent a year ago. Sequentially, it moderated from 87.81 per cent as of September 2021.
Das said its advances increased by 5.40 per cent year on year (YOY) to Rs 4,37,399 crore. With good traction in segments like retail and agriculture, bank expects to grow advances by 7-8 per cent in FY22.
Its deposits increased by 1.84 per cent YOY to Rs 6,23,120 crore in December 2021.
The bank's capital adequacy ratio stood at 16.66 per cent in December 2021, up from 12.51 per cent in December 2020.
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