BoB net falls 21.5%; rise in provisions hit bottomline
The third largest public sector bank’s net interest margin (NIM) for the October-December sequentially fell 6 bps to 2.65%. The bank expects domestic NIM, which were at 3.08 % in the latest reported quarter, to remain above 3% in FY2012-13.
“We have been brining down our high cost deposit and Casa has also slightly improved. These along with repricing some loans could help us protect our margins,” said SS Mundra, who was appointed chairman and managing director of BoB on January 22 nearly two months after MD Mallya retired from the post in November 2012. Mundra was an executive director at Union Bank of India prior to the new appointment.
The net interest income (NII) for BoB rose 7% y-o-y to R2,840.90 crore, while total income rose 10% y-o-y to R9,685.5 crore. The bank said NII growth was muted as interest expenses increased 20% y-o-y to R6,004.02 crore. Other income fell 27% y-o-y to R840.6 crore as income from the treasury business fell.
The asset quality of BoB deteriorated with the gross non-performing assets (NPAs) sequentially rising 43 basis points to 2.41% and net NPAs rising to 1.12%, from 0.82%. Slippages during the quarter were to the tune of
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