Moneycontrol Bureau
State owned Bank of India's fourth quarter (Jan - March) net profit shrank more than 20 percent year-on-year to Rs 757 crore, squeezed by higher provisions that more than doubled to Rs 1,511 crore as against Rs 702 crore a year back.
During the quarter, net interest income or the difference between interest earned and paid out, fell marginally by 1 percent y-o-y to Rs 2,476 crore. Net interest margin (NIM) stood at 2.46 percent versus 2.36 percent in October - December quarter and 2.86 percent in Q4, FY12.
However, non-interest income increased by 13 percent y-o-y to Rs 1,094 crore.
"Non-performing assets have peaked at BoI," V Iyer, chairman and managing director of the bank told reporters while announcing the quarterly numbers.
"We expect the credit quality stress to come down as economy picks up. Stress is coming from sectors like textiles, steel, chemicals, infrastructure and services. We have a pipeline of Rs 515 crore restructured loans. We plan to grow our retail credit segement," she said.
Global loans expanded nearly 17 percent y-o-y to Rs 2.93 lakh crore. Retail domestic credit grew 17 percent y-o-y to Rs 22,350 crore while total domestic credit increased 15 percent y-o-y to Rs 2.04 lakh crore.
Gross non-performing ratio rose to 2.99 percent as against 2.34 percent in the corresponding quarter of the previous year. Net NPA ratio stood at 2.06 percent compared with 1.47 percent during the same period underscoring the credit quality stress.
Deposits grew 20 percent y-o-y to Rs 3.82 lakh crore. Share of current and savings account deposits (CASA), a source of low cost funds, stood at 32.79 percent compared with 34.25 per cent a year back. The bank reduced its share of high cost deposits from Rs 43,111 crore to Rs 27,173 crore. Currently, it stood at 9.13 percent of its domestic deposit book of Rs 2.94 lakh crore.
Bank of India shares fell almost 5 percent on Monday to close the day's trading at Rs 324 on NSE.
saikat.das@network18online.com
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
