Bank of India posts 63% jump in net profit

Bank of India (BoI) on Monday reported a 63% year-on-year jump in its net profit to Rs 2,374 crore for the quarter ended September, driven by higher non-interest income.

Total income increased to Rs 19,872 crore, compared with Rs 16,659 crore in the year-ago period. Net interest income increased 4% YoY to Rs 5,986 crore.

Non-interest income jumped 49% YoY to Rs 2,518 crore during the quarter under review, compared with Rs 1,688 crore in the same period last year. The rise in non-interest income was attributed to an uptick in recovery and higher treasury income, said Rajneesh Karnatak, MD and CEO, in a post-earnings conference call.

However, the net interest margin shrunk both globally and domestically. Global NIM was down to 1.17% from 1.22% a year ago, while domestic NIM fell to 3.14% from 3.47%.

“Some pressure on NIM was from global business. Banks having global business have been facing some pressure in global NIMs. Global NIM is at 1.17%, which has affected the overall NIMs. But domestic NIM is still healthy,” said Karnatak. By the fiscal-end, the global NIM will be around 2.90%.

The bank reported a decrease in both gross and net NPAs, reflecting the continued recovery and strengthening balance sheet amid a challenging economic environment.

Gross NPA stood at 4.41%, improving from 4.62% in the previous quarter, while Net NPA declined to 0.94% from 0.99%.

Provisions on NPAs increased to Rs 2,64,316 crore from Rs 1,45,473 crore. The bank has provided for 100% on one public sector undertaking NPA. The NPA was of around Rs 1,000 crore and the entity is part of the telecom sector. Talks are underway and restructuring is happening, the management said.

Domestic deposits rose 12.34% on a yearly basis to Rs 6,72,731 crore from Rs 5,98,850 crore. Domestic CASA expanded 7.26% and the CASA ratio stood at 41.18%.

Domestic advances increased 15.03% to Rs 5,20,653 crore from Rs 4,52,641 crore in the same quarter of the previous year. RAM ( retail, agri, and MSME) advances, which made up 57.70% of advances, grew 19.74% YoY to Rs 3,00,412 crore.