Bank of India registered a fivefold enhance in net profit to Rs 541 crore through the December quarter (Q3FY21) compared to the corresponding quarter final year. Provisions declined 51% year on year (YoY) and 14% quarter on quarter (QoQ) to Rs 1,980 crore. Its operating profit declined 31% YoY and 8% QoQ to Rs 2,836 crore. The interest revenue (NII) fell 9% on a y-o-y as effectively as sequential basis to Rs 3,739 crore.
Explaining the cause behind reduced provisions, BoI MD and CEO Atanu Kumar Das stated provisioning was higher through the December quarter final year (Q3FY20) as the lender had supplied for Dewan Housing Finance Corporation (DHFL) through that period. This year, as well, we have produced a lot of proactive and preemptive provisions from Q1FY21 itself, he added. The provision coverage ratio (PCR), which was 77.15% in Q3FY20 and touched 87.91% in Q2FY21, has moved up additional to 89.32% in Q3FY21.
“We feel as the economy revives post March in a much significant manner, we will be able to see our credit growth at faster pace around 10-12%,” he added. The lender has been in a position to register impressive credit development through the quarter beneath critique. Advances grew 9.6% YoY and 1.8% QoQ to Rs 4.14 lakh crore. Deposits grew 17% YoY to Rs 6.1 lakh crore, but remained flat sequentially. Current account savings account (CASA) ratio remained at 40.61%, compared to 39.49% in the September quarter. Credit expense remained at .68%, compared to 2.33% in Q2FY21.
The lender’s net interest margins (NIMs) contracted by 8 basis points (bps) sequentially and 49 bps YoY to 2.58%. “By March end this year, we aim at NIM of 2.75% on the back of volume- led growth.” Das stated.
The lender’s asset excellent showed an improvement through the December quarter. Gross non-performing assets (NPAs) ratio enhanced 54 bps to 13.25%, compared to 13.79% in the preceding quarter. Similarly, net NPAs ratio came down 86 bps to 3.27% from 4.13% in the September quarter. The lender has not classified any NPAs given that August 31, 2020, due to the interim order of the Supreme Court. “On a pro forma basis, gross NPAs stood at 14.59% and net NPAs at 3.73%,” Das stated. About the asset excellent in the coming quarters, he stated that gross NPAs can maximum go up to 14.25%.
The capital adequacy ratio stood at 12.51% at the finish of the December quarter, compared to 12.8% in the preceding quarter.