BoI net profit down at Rs 2,221cr for FY22 on divergence in provisioning

State-owned Bank of India reported divergence in its asset classification for FY22, resulting in lowering of net profit for the year to Rs 2,221 crore

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State-owned Bank of India (BoI) on Friday reported divergence in its asset classification for FY22, resulting in lowering of net profit for the year to Rs 2,221 crore.

The lender had reported a net profit of Rs 3,404.70 crore for 2021-22.

According to a regulatory filing, there was divergence of Rs 105 crore in bank's gross non-performing assets (NPAs) with the bank reporting it to be at Rs 45,605.40 crore. However, as per Reserve Bank of India (RBI) assessment, it came at a higher value of Rs 45,710.40 crore.

On the flip side, in case of the net NPAs the bad loans fell by Rs 87 crore as the RBI assessed it at a lower Rs 9,764.93 crore as against Rs 9,851.93 crore reported by the bank.

The divergence in provisioning came in at Rs 1,819 crore.

Bank of India said the adjusted net profit of the bank before considering the impact of tax on divergence in provisioning for FY22 was at Rs 1,585.70 crore.

However, the net profit was further boosted to Rs 2,221.33 crore for the year ended March 2022 upon adding Rs 635.63 crore as an impact of tax on divergence in provisioning, showed the data.