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Bank of
India has posted 142%
growth in net profit to Rs 606.26 crore in the
quarter ended March 2022 (Q4FY2022), driven by strong growth in the net
interest income, improvement in cost-to-income ratio and decline in provisions.
The bank
has continued to improve asset quality with stable fresh slippages of loans and
better recoveries and upgradations of bad loans. The bank has exhibited
substantial improvement in the net interest margin to 2.58% in Q4FY2022 from 2.01% in Q4FY2021.
The bank
has exhibited sharp acceleration in the loan growth to double digit level at
11%, while deposits growth has moderated. Bank has improved credit deposit
ratio to 72.8%, while CASA ratio has moved up to 45.02% end March 2022.
Asset quality improves: The
fresh slippages of advances were stable, while the bank has improved recoveries
and upgradations supporting asset quality in Q4FY2022.
Fresh
slippages were Rs 1828 crore in the quarter ended March 2022, while the
recoveries, upgradations, write-offs and sales of bad loans together were higher
at Rs 1983 crore in Q4FY2022.
Outstanding
standard restructured advances of the bank stood at Rs 16880 crore (3.7% of global
advances) at end March 2022.
Risk
weighted asset of the bank grew 5% to Rs 316395 crore at end March 2022.
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Asset Quality Indicators: Bank of India
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Mar-22
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Dec-21
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Sep-21
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Jun-21
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Mar-21
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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45605.40
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45759.76
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50270.13
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56041.63
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56534.95
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0
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-19
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Net NPA (Rs Crore)
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9851.93
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10708.02
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10576.22
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12424.13
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12262.03
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-8
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-20
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% Gross NPA
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9.98
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10.46
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12.00
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13.51
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13.77
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-48
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-379
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% Net NPA
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2.34
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2.66
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2.79
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3.35
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3.35
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-32
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-101
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% Provision Coverage Ratio
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87.76
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86.86
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87.81
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86.17
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86.24
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90
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152
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% CRAR - Basel III
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17.04
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16.66
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17.05
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15.07
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14.93
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38
|
211
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Tier I - Basel III %
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14.45
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13.60
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13.88
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11.97
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11.96
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85
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249
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Variation in basis points for figures given in percentages and
in % for figures in Rs crore
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Business
Performance:
Business growth improves: Business
of the bank rose 5% at Rs 1084910 crore at end March 2022. During the quarter,
the domestic business rose 3% at Rs 944824 crore, while foreign business moved
up 13% to Rs 140086 crore at end March 2022. Deposits were flat at Rs 627896
crore, while the advances jumped 11% to Rs 457014 crore at end March 2022.
CASA improves: CASA deposits
of bank increased 9% to Rs 245464 crore. Current account deposits rose 6% at Rs
29826 crore, while saving account deposits improved 10% to Rs 215638 crore. The
CASA ratio improved to 45.0% at end March 2022 from 44.1% a quarter ago and
41.3% a year ago.
Domestic loan growth accelerates: The
domestic advances book expanded at improved pace of 9% to Rs
393991 crore at end March 2022. Within the domestic advances, the retail credit
grew 19% to Rs 80674 crore, while agri credit increased 19% to Rs 66431 crore
and MSME credit moved up 10% at Rs 69462 crore at end March 2022. However, the corporate
credit was flat at Rs 129586 crore.
Investment book of the
bank declined 8% to Rs 171411 crore at end March 2022, as SLR investment dipped
9% to Rs 128163 crore at end March 2022. The AFS investment also plunged 27% to
Rs 38505 crore at end March 2022.
NIM improves: Global
NIM of the bank improved to 2.58% in Q4FY2022 from 2.27% in the previous
quarter and 2.01% in corresponding quarter last year. Yield on advances dipped 25
bps qoq to 6.77%, while cost of deposits eased 21 bps qoq to 3.54% in Q4FY2022.
Book Value per share stood at Rs
117.4 per share at end March 2022, while adjusted book value (net of NNPA and
25% of restructured advances) stood at Rs 83.2 per share at end March 2022.
Quarterly
Performance:
NII jumps on higher margins and acceleration
in loan growth: For the quarter ended March 2022, the NII of the bank jumped 36%
to Rs 3986.10 crore. Interest earned rose 6% to Rs 9856.28 crore, while
interest expenses fell 8% to Rs 5870.18 crore.
Core fee income eases: The core
fee income of the bank declined 7% to Rs 293 crore, while forex income fell 7%
to Rs 661 crore and trading income slipped into losses of Rs 111 crore in
Q4FY2022. The other income also fell 18% to Rs 390 crore, while the recoveries
in written off account jumped 37% to Rs 354 crore. The overall non-interest
income fell 13% to Rs 1587 crore in Q4FY2022.
Net Total
income increased 17% yoy basis to Rs 5573.27 crore in quarter under review.
Expense ratio declines:
Operating expenses rose 7% to Rs 3107.62 crore with 8% increase in other
operating expenses to Rs 1329.86 crore, while employee expenses moved up 7% to
Rs 1777.76 crore. The expense ratio dipped 5.0 percentages yoy to 55.8% in
Q4FY2022 from 60.8% in Q4FY2021.
Operating
profit improved 32% to Rs 2465.65 crore in the quarter ended March 2022.
Provision declines: The
provision for NPA dipped 63% to Rs 1135 crore in Q4FY2022. However, the provisions
for investment depreciation increased 68% to Rs 323 crore in Q4FY2022 and
provisions for standard advances were charged at Rs 83 crore in Q4FY2022
against write back of Rs 1674 crore in Q4FY2021.
PBT
jumped to Rs 925.04 crore in Q4FY2022 from Rs 263.33 crore in Q4FY2021.
An
effective rate jumped to 34.5% in Q4FY2022 from 5.0% in Q4FY2021, allowing the
net profit to increased 142% to Rs 606.26 crore for Q4FY2022.
Financial
Performance FY2022:
For the
year ended March 2022 (FY2022), Bank has posted the net profit of Rs 3404.70
crore compared with net profit of Rs 2160.30 crore in FY2021. The net interest
income fell 1% to Rs 14062.10 crore, while non-interest income increased 15% to
Rs 7878.73 crore in FY2022. The expense ratio rose to 54.5% in FY2022 compared
to 51.3% in FY2021.
The
operating expenses increased 10% to Rs 11952.38 crore, while provision and
contingencies dipped 37% to Rs 4421.70 crore. The profit before tax increased
72% to Rs 5566.75 crore in FY2022. An effective tax rate rose to 38.8% in
FY2022 from 33.3% in FY2021. The net profit moved up 58% to Rs 3404.70 crore in
FY2022.
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Bank of India: Results
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Particulars
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2203
(3)
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2103
(3)
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Var %
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2203
(12)
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2103
(12)
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Var %
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Interest Earned
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9856.28
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9326.60
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6
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38075.83
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40599.44
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-6
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Interest Expended
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5870.18
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6390.74
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-8
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24013.73
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26329.60
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-9
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Net Interest Income
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3986.10
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2935.86
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36
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14062.10
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14269.84
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-1
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Other Income
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1587.17
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1828.94
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-13
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7878.73
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6841.87
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15
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Net Total Income
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5573.27
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4764.80
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17
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21940.83
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21111.71
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4
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Operating Expenses
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3107.62
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2894.73
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7
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11952.38
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10839.11
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10
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Operating Profits
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2465.65
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1870.07
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32
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9988.45
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10272.60
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-3
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Provisions & Contingencies
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1540.61
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1606.74
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-4
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4421.70
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7035.88
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-37
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Profit Before Tax
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925.04
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263.33
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251
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5566.75
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3236.72
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72
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Provisions for tax
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318.78
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13.14
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2326
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2162.05
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1076.42
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101
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Net Profit
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606.26
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250.19
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142
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3404.70
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2160.30
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58
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EPS*(Rs)
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5.9
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2.4
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8.3
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5.3
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* 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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