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Bank of India has reported 22% decline in net profit at Rs 561.49
crore for the quarter ended June 2022 (Q1FY2023). The bank has posted healthy 30%
growth in net interest income (NII), while the core fee income of the bank also
improved 20% in Q1FY2023. The Net Interest Margin (NIM) of the bank improved to
2.55% in Q1FY2023 compared to 2.16% in the corresponding quarter of previous
year.
On
business front, the bank as has posted 8% growth in business with strong 15% surge
in loan book. The asset quality of the bank has improved in Q1FY2023. Bank has
substantially improved the credit to deposit ratio to 74.6% at end June 2022
from 66.5% at end June 2021. The CASA ratio of the bank has also improved
marginally to 41.1% at end June 2022 from 41.0% at end June 2021.
Asset
quality improves: The bank has improved stable asset quality in Q1FY2023.
The fresh
slippages of loans stood at Rs 2833 crore in Q1FY2023 compared with 1828 crore
in previous quarter and Rs 3942 crore in the corresponding quarter last year.
The
recoveries of NPAs stood at Rs 1219 crore, upgradations at Rs 465 crore and the
write-off of loans was at Rs 2340 crore in Q1FY2023.
The
standard restructured loan book of the bank declined to Rs 15475 crore end June
2022.
Provision
coverage ratio was steady at 87.96% at end June 2022 compared to 87.76% a
quarter ago and 86.17% a year ago.
The
capital adequacy ratio of the bank stood at 15.6% with Tier I ratio at 13.3% at
end June 2022.
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Asset Quality Indicators: Bank of India
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Jun-22
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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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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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44414.67
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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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-3
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-21
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Net NPA (Rs Crore)
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9775.23
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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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-1
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-21
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% Gross NPA
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9.30
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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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-68
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-421
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% Net NPA
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2.21
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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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-13
|
-114
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% PCR
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87.96
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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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20
|
179
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% CRAR - Basel III
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15.61
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16.51
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16.66
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17.05
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15.07
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-90
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54
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% CRAR - Tier I - Basel III
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13.27
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13.92
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13.60
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13.88
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11.97
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-65
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130
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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 Highlights:
Business
growth improves: The business of the bank has increased 8% YoY to Rs 1118481 crore
end June 2022, driven by 15% surge in advances to Rs 477746 crore. Deposits
rose 3% to Rs 640735 crore at end June 2022.
CASA
deposits ratio stable: The CASA deposits of the bank rose 3% YoY to
Rs 263598 crore at end June 2022. The CASA ratio improved slightly to 41.1% at
end June 2022 compared to 41.0% at end June 2021, while declined marginally from
41.5% a quarter ago.
Strong
loan growth: Advances growth was driven by retail loans rising 22% YoY to Rs 83407
crore at end June 2022, while credit to agriculture increased 16% to Rs 65454 crore
and MSME 8% to Rs 68520 crore at end June 2022. The corporate credit has moved
up 3% to Rs 183829 crore end June 2022. The overseas loans of the bank have
jumped 56% to Rs 76536 crore end June 2022.
Investment
book of the bank declined 5% YoY to Rs 174982 crore at end June 2022. The AFS
book dipped 20% to Rs 45051 crore, while HTM book rose 1% to Rs 129807 crore at
end June 2022. The duration of the AFS investment portfolio stood at 3.64 years
end June 2022 compared with 3.38 years at end June 2021.
Margins
improve: The bank has showed sharp 30 bps YoY decline in cost of deposits
to 3.49%, while yield on advances decline only 9 bps YoY to 6.58% in Q1FY2023. Thus,
the NIM has improved 39 bps YoY to 2.55%.
Book
value of the bank stood at Rs 119.4 per share at end June 2022, while
the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 86.1
per share at end June 2022.
Quarterly
Performance
NII rises
as NIM improves: Bank has recorded 7% increase in the interest earned at Rs 9972.64
crore, while interest expenses declined 4% to Rs 5900.21 crore in Q1FY2023. NII
improved 30% to Rs 4072.43 crore in the quarter ended June 2022.
Healthy
growth in the core fee income: Bank has posted strong 20% growth
in core fee income to Rs 286 crore, while the recoveries and other income
jumped 37% to Rs 278 crore. However, the forex income declined 43% to Rs 431 crore
and the treasury segment witnessed loss of Rs 148 crore, causing 50% dip in the
overall non-interest income to Rs 1151.72 crore in the quarter ended June 2022.
Expenses
ratio rises: The operating expenses of the bank increased 12% to Rs 3041.34 crore,
as other expenses moved up 22% to Rs 1232.18 crore, while employee expenses increased
6% to Rs 1809.16 crore in Q1FY2023. Cost to income ratio inched up to 58.2% in
Q1FY2023 compared with 49.7% in Q1FY2022, causing 21% decline in the Operating
Profit to Rs 2182.81 crore.
Provisions
and contingencies decline: The bank has showed 20% decline in provisions
to Rs 1321.74 crore, as standard asset provisions dipped 97% to Rs 23 crore,
while bank has also written back investment provisions of Rs 5 crore. However,
the loan loss provisions jumped 49% to Rs 1304 crore.
Effective
tax rate rose slightly to 34.8% in
Q1FY2023 from 34.4% in Q1FY2022. Net Profit fell 22% YoY to Rs 561.49 crore
during quarter ended June 2022.
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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2206
(3)
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2106
(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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9972.64
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9321.31
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7
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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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5900.21
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6176.70
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-4
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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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4072.43
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3144.61
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30
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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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1151.72
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2320.06
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-50
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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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5224.15
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5464.67
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-4
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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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3041.34
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2715.22
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12
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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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2182.81
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2749.45
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-21
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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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1321.74
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1652.36
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-20
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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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861.07
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1097.09
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-22
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5566.75
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3236.72
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72
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Provision for tax
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299.58
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377.09
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-21
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2162.05
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1076.42
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101
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PAT
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561.49
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720.00
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-22
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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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5.5
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7.0
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8.3
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5.3
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Adj BV (Rs)
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86.1
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73.5
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83.2
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74.4
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*
Annualized on current equity of Rs 4104.31 crore. Face Value: Rs 10, Figures
in Rs crore
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Source:
Capitaline Corporate Database
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