Bank of India on November 4 reported a 52 percent rise in its net profit to Rs 1,458.43 crore in the second quarter of the current financial year. In the year-ago period, the state-owned lender reported Rs 960 crore net profit.
This was on the back of sharp improvement in the asset quality and increase in margins of the lender.
On a sequential basis, net profit has fallen 6 percent.
In the reporting quarter, the asset quality of the state-owned lender improved sharply with gross non-performing assets (NPA) ratio stood at 5.84 percent, as compared to 8.51 percent in a similar period last year.
Similarly, net NPA ratio fell to 1.54 percent as on September 30, 2023, as against 1.92 percent in a year ago period, and 1.65 percent in a quarter ago period.
In absolute terms, gross NPA of the bank stood at Rs 31,719 crore as on September 30, 2023, as compared to Rs 34,582 crore as on June 30, 2023, and Rs 42,014 crore as on September 30, 2022.
Whereas, net NPA stood at Rs 7,978 in July-September quarter, as against Rs 8,119 crore in a quarter ago period, and Rs 8,836 crore in a year ago period.
In reporting quarter, Provision Coverage Ratio (PCR) improved by 62 basis points (bps) on-year, as per release. PCR of the state-owned bank stood at 89.58 percent as on September 30, 2023, as against 88.96 percent in a year ago period.
Net interest Income
The net interest income (NII) of the bank in July-September quarter rose 13 percent on-year to Rs 5,740 crore, as compared to Rs 5,083 crore in a year ago period.
However, on a quarterly basis, NII of the bank fell 3 percent.
The interest income of the bank in the reporting quarter was Rs 14,971 crore, and interest expanded stood at Rs 9,231 crore.
Net interest margins of Bank of India by 4 bps in reporting quarter to 3.08 percent. In a year ago period, it stood at 3.04 percent, and 3.03 percent in a quarter ago period.
Deposits and advances
Global Business increased by 9.25 percent on-year from Rs 11,41,356 crore in September 2022 to Rs 12,46,879 crore in September 2023.
Global Deposits increased by 8.68 percent on-year from Rs 6.5 lakh crore in September 2022 to Rs 7.03 crore in September 2023.
Global Advances increased by 10 percent on-year from Rs 4.94 lakh crore in September 2022 to Rs 5.43 lakh crore in September 2023.
Domestic Deposits increased by 8.61 percent on-year from Rs 5.51 lakh crore in September 2022 to Rs 5.99 lakh crore in September 2023.
Domestic Advances increased by 9.80 percent on-year from Rs 4.12 lakh crore in September 2022 to Rs 4.53 lakh crore in September 2023.
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