BoI net profit triples to Rs 1,551 crore in Q1
Hyderabad: State-owned Bank of India (BoI) on Friday reported a nearly three-fold surge in net profit at Rs1,551 crore in the June 2023 quarter, due to a decline in bad loans and higher margins following repricing of existing assets.
The Mumbai-based lender said its total income rose to Rs15,821 crore against Rs11,124 crore in the same period a year ago. Of this, the key profitability metric net interest income rose 45 per cent to Rs5,915 crore and non-interest income increased 27 per cent to Rs1,462 crore. The yield on advances rose by 157 bps, boosting its net profit by 176 per cent to Rs1,551 crore in the reporting period. The bottom line was also buoyed by a 49 bps increase in global NIM to 3.03 per cent, while domestic NIM improved 51 bps to 3.37 per cent, Chief Executive and Managing Director Rajneesh Karnatak told. The bank saw major improvement in asset quality with gross NPAs falling by 22.14 per cent to Rs34,583 crore from Rs44,415 crore and net NPAs declined by 16.96 per cent to Rs8,119 crore from Rs9,775 crore.
In percentage terms, the gross NPA ratio improved 263 bps to 6.67 from 9.30 and the net NPA ratio improved by 56 bps to 1.65 in June 2023 from 2.21 in June 2022. The provision coverage ratio improved by 156 bps to 89.52 from 87.96, Karnatak said, adding the bank’s core capital ratio stood at 15.60 with CET-1 ratio at 13.02. Karnatak said its global business crossed Rs12 lakh crore mark, increased by 8.61 per cent to Rs5,18,264 crore and global deposits increased 8.71 per cent to Rs6,96,544 crore.
