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Bank of India has posted 100% growth in net profit to Rs 1050.98 crore in the quarter ended September 2021
(Q2FY2022), driven by strong growth in the non-interest income and decline in
provisions. The bank has exhibited an improvement in the loan growth and asset
quality in Q2FY2022. The net interest margin improved on sequential basis,
while margin declined over a year ago level. The CASA deposit ratio was stable
at 43.11% end September 2021.
Asset quality improves: The fresh
slippages of advances declined supporting an improvement in the asset quality
of the bank in Q2FY2022.
Fresh
slippages declined to Rs 1307 crore in the quarter ended September 2021, while
the recoveries, upgradations, write-offs and sales of bad loans together were
at Rs 7079 crore in Q2FY2022.
Outstanding
standard restructured advances of the bank stood at Rs 21275 crore (5.1% of
global advances) at end September 2021.
Risk
weighted asset of the bank was flat at Rs 296127 crore at end September 2021.
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Asset Quality Indicators: Bank of India
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|
|
Sep-21
|
Jun-21
|
Mar-21
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Dec-20
|
Sep-20
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Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
50270.13
|
56041.63
|
56534.95
|
54997.03
|
56231.76
|
-10
|
-11
|
-11
|
|
Net NPA (Rs Crore)
|
10576.22
|
12424.13
|
12262.03
|
9077.32
|
10443.71
|
-15
|
-14
|
1
|
|
% Gross NPA
|
12.00
|
13.51
|
13.77
|
13.25
|
13.79
|
-151
|
-177
|
-179
|
|
% Net NPA
|
2.79
|
3.35
|
3.35
|
2.46
|
2.89
|
-56
|
-56
|
-10
|
|
% Provision Coverage Ratio
|
87.81
|
86.17
|
86.24
|
89.32
|
87.91
|
164
|
157
|
-10
|
|
% CRAR - Basel III
|
17.05
|
15.07
|
14.93
|
12.51
|
12.80
|
198
|
212
|
425
|
|
Tier I - Basel III %
|
13.88
|
11.97
|
11.96
|
9.44
|
9.67
|
191
|
192
|
421
|
|
Variation in basis points for figures given in percentages and
in % for figures in Rs crore
|
Business
Performance:
Business growth improves: Business
of the bank rose 2% at Rs 1031856 crore at end September 2021. During the
quarter, the domestic business rose 2% at Rs 914307 crore, while foreign
business declined 3% to Rs 117549 crore at end September 2021. Deposits rose 1%
at Rs 612961 crore, while the advances increased 3% to Rs 418895 crore at end
September 2021.
CASA stable: CASA deposits
of bank increased 12% to Rs 232797 crore. Current account deposits rose 14% at
Rs 27737 crore, while saving account deposits improved 12% to Rs 205060 crore. The
CASA ratio was at 43.1% at end September 2021 from 43.2% a quarter ago and 39.5%
a year ago.
Steady domestic loan growth: The
domestic advances book expanded 2% to Rs 368573 crore at end
September 2021. Within the domestic advances, the retail credit grew 11% to Rs 70887
crore, while corporate credit declined 12% to Rs 122390 crore. Agri credit
increased 14% to Rs 61886 crore, while MSME credit rose 7% to Rs 64984 crore at
end September 2021.
Investment
book of the bank declined 6% to Rs 169800 crore at end September 2021, as AFS
investment dipped 29% to Rs 40532 crore. SLR investment rose 2% to Rs 140775 crore
at end September 2021.
NIM improves: Global
NIM of the bank rose to 2.42% in Q2FY2022 from 2.16% in the previous quarter
and declined from 2.66% in corresponding quarter last year. Yield on advances moved
up 34 bps qoq to 7.01%, while cost of deposits eased 4 bps qoq to 3.75% in
Q2FY2022 helping to improve NIMs on sequential basis.
Book Value per share stood at Rs 114.0
per share at end September 2021, while adjusted book value (net of NNPA and 25%
of restructured advances) stood at Rs 75.3 per share at end September 2021.
Quarterly
Performance:
NII declines on yoy decline in margins: For the
quarter ended September 2021, the NII of the bank declined 14% to Rs 3523.48 crore.
Interest earned declined 12% to Rs 9522.31 crore, while interest expenses fell 10%
to Rs 5998.83 crore.
Core fee income jumps: The core
fee income of the bank jumped 23% to Rs 340 crore, while forex income galloped 36%
to Rs 568 crore and trading income jumped 68% to Rs 429 crore in Q2FY2022. The
other non-interest income also jumped 112% to Rs 231 crore leading to overall 59%
surge in the non-interest income of the bank to Rs 2136 crore in Q2FY2022.
Net Total
income rose 4% yoy basis to Rs 5659.76 crore in quarter under review.
Expense ratio jumps:
Operating expenses galloped 13% to Rs 2982.16 crore with 11% increase in other
operating expenses to Rs 1245.72 crore, while employee expenses moved up 16% to
Rs 1736.44 crore.
The
expense ratio increased 4.5 percentages yoy to 52.7% in Q2FY2022 from 48.2% in
Q2FY2021.
Operating
profit declined 5% to Rs 2677.60 crore in the quarter ended September 2021.
Provision declines: The
provision for NPA dipped 89% to Rs 241 crore in Q2FY2022, while the provisions
for investment depreciation rebounded to Rs 22 crore and the standard advances
provisions to Rs 631 crore in Q2FY2022. Overall provisions declined 56% to Rs 893.80
crore in Q2FY2022.
With the
dip in provisions, PBT surged 127% to Rs 1783.80 crore in the quarter ended
September 2021.
Tax
provisions jumped to Rs 732.82 crore in Q2FY2022 from Rs 259.60 crore in
Q2FY2021. The net profit increased 100% to Rs 1050.98 crore for Q2FY2022.
Financial
Performance H1FY2022:
For the half year ended September 2021 (H1FY2022), Bank has posted
the net profit of Rs 1770.98 crore compared with net profit of Rs 1369.38 crore
in H1FY2021. The net interest income declined 12% to Rs 6668.09 crore, while non-interest
income rose 43% to Rs 4456.34 crore in H1FY2022. The expense ratio improved to 51.2%
in H1FY2022 compared to 46.4% in H1FY2021. The operating expenses increased 15%
to Rs 5697.38 crore, while provision and contingencies dipped 30% to Rs 2546.16
crore. The profit before tax stood at Rs 2880.89 crore in H1FY2022. Bank has
made tax provisions of Rs 1109.91 crore, and net profit stood at Rs 1770.98 crore
in H1FY2022.
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Bank of India: Results
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|
Particulars
|
2109
(3)
|
2009
(3)
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Var %
|
2109
(6)
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2009
(6)
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Var %
|
2103
(12)
|
2003
(12)
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Var %
|
|
Interest Earned
|
9522.31
|
10795.51
|
-12
|
18843.62
|
21029.75
|
-10
|
40599.44
|
42353.26
|
-4
|
|
Interest Expended
|
5998.83
|
6682.21
|
-10
|
12175.53
|
13435.31
|
-9
|
26329.60
|
27096.29
|
-3
|
|
Net Interest Income
|
3523.48
|
4113.30
|
-14
|
6668.09
|
7594.44
|
-12
|
14269.84
|
15256.97
|
-6
|
|
Other Income
|
2136.28
|
1346.01
|
59
|
4456.34
|
3115.58
|
43
|
7441.49
|
6713.07
|
11
|
|
Net Total Income
|
5659.76
|
5459.31
|
4
|
11124.43
|
10710.02
|
4
|
21711.33
|
21970.04
|
-1
|
|
Operating Expenses
|
2982.16
|
2628.78
|
13
|
5697.38
|
4972.68
|
15
|
10839.11
|
10451.40
|
4
|
|
Operating Profits
|
2677.60
|
2830.53
|
-5
|
5427.05
|
5737.34
|
-5
|
10872.22
|
11518.64
|
-6
|
|
Provisions & Contingencies
|
893.80
|
2045.15
|
-56
|
2546.16
|
3619.51
|
-30
|
7635.50
|
16121.37
|
-53
|
|
Profit Before Tax
|
1783.80
|
785.38
|
127
|
2880.89
|
2117.83
|
36
|
3236.72
|
-4602.73
|
LP
|
|
Provisions for tax
|
732.82
|
259.60
|
182
|
1109.91
|
748.45
|
48
|
1076.42
|
-1645.84
|
PL
|
|
Net Profit
|
1050.98
|
525.78
|
100
|
1770.98
|
1369.38
|
29
|
2160.30
|
-2956.89
|
LP
|
|
EPS*(Rs)
|
10.2
|
5.1
|
|
8.6
|
6.7
|
|
5.3
|
-7.2
|
|
|
* Annualized on current equity of Rs 4104.31 crore. Face Value:
Rs 10, Figures in Rs crore, LP : Loss to profit ; PL : Profit to loss
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Source: Capitaline Corporate Database
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