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Bank of
India has posted 90% growth in net profit to Rs 1027.45 crore in the quarter
ended December 2021 (Q3FY2022), with the sharp decline in provisions. The company
has also exhibited marginal improvement in the asset quality, while fresh slippages
of loans were under control.
The
bank has recorded 9% decline in net interest income, while other income also fell
3% drive by dip in treasury income in Q3FY2022. However, the core fee income
has increased 12%. The NIM has declined yoy as well qoq to 2.27% in Q3FY2022.
Business
growth has improved to 3% end December 2021 with the acceleration in loan
growth to 5%. Deposits growth also improved to 2%. The CASA deposits ratio of
the bank has moved up to 44.1% end December 2021.
Asset quality improves: The fresh slippages
of advances under control and decline restructured loan book supported the
asset quality of the bank in Q3FY2022.
Gross
NPA ratio at 10.46% was down by 154 bps sequentially. Net NPA ratio at 2.66% also
declined by 13 bps sequentially.
Fresh slippages
was at Rs 1845 crore in the quarter ended December 2021, while the recoveries,
upgradations, write-offs and sales of bad loans together were at Rs 6355 crore
in Q3FY2022.
Slippage
ratio was at 0.47% and Credit Cost at 0.71% in Q3FY2022.
Outstanding
standard restructured advances of the bank stood at Rs 18826 crore (4.3% of
global advances) at end December 2021.
Provision
Coverage Ratio (PCR) stood high at 86.86%.
Risk
weighted asset of the bank grew 2% to Rs 308769 crore at end December 2021.
CRAR stood
at 16.66% with CET-1 ratio of 13.16%.
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Asset Quality Indicators: Bank of India
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|
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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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Dec-20
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Variation
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|
QoQ
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YTD
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YoY
|
|
Gross NPA (Rs Crore)
|
45759.76
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50270.13
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56041.63
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56534.95
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54997.03
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-9
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-19
|
-17
|
|
Net NPA (Rs Crore)
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10708.02
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10576.22
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12424.13
|
12262.03
|
9077.32
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1
|
-13
|
18
|
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% Gross NPA
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10.46
|
12.00
|
13.51
|
13.77
|
13.25
|
-154
|
-331
|
-279
|
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% Net NPA
|
2.66
|
2.79
|
3.35
|
3.35
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2.46
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-13
|
-69
|
20
|
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% Provision Coverage Ratio
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86.24
|
87.81
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86.17
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86.24
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89.32
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-157
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0
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-308
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% CRAR - Basel III
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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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12.51
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-39
|
173
|
415
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Tier I - Basel III %
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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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9.44
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-28
|
164
|
416
|
|
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 3% at Rs 1060519 crore at end December 2021. The domestic business rose 3%
at Rs 927724 crore, while foreign business moved up 4% to Rs 132795 crore at
end December 2021. Deposits rose 2% at Rs 623120 crore, while the advances increased
5% to Rs 437399 crore at end December 2021.
CASA improves: CASA deposits of
bank increased 11% to Rs 237906 crore. Current account deposits rose 6% at Rs 31243
crore, while saving account deposits improved 12% to Rs 206663 crore. The CASA
ratio improved to 44.1% at end December 2021 from 43.1% a quarter ago and 40.6%
a year ago
Domestic loan growth accelerates: The domestic advances
book expanded at improved pace of 5% to Rs 382365 crore at end December 2021. Within
the domestic advances, the retail credit grew 16% to Rs 75542 crore, while
corporate credit declined 4% to Rs 125864 crore. Agriculture credit increased 12%
to Rs 64439 crore, while MSME credit moved up 9% at Rs 67400 crore at end
December 2021.
Investment book of the bank declined
3% to Rs 168993 crore at end December 2021, as SLR investment dipped 5% to Rs 124509
crore at end December 2021. The AFS investment plunged 30% to Rs 37614 crore at
end December 2021.
NIM eases: Global NIM of the bank declined to 2.27%
in Q3FY2022 from 2.42% in the previous quarter and 2.58% in corresponding
quarter last year. Yield on advances rose 1 bps qoq to 7.02%, while cost of
deposits was flat qoq at 3.75% in Q3FY2022.
Book Value per share stood at Rs 116.3 per share
at end December 2021, while adjusted book value (net of NNPA and 25% of
restructured advances) stood at Rs 78.7 per share at end December 2021.
Quarterly Performance:
NII declines and NIM eases: For the quarter
ended December 2021, the NII of the bank declined 9% to Rs 3407.90 crore, Interest
earned declined 8% to Rs 9375.92 crore, while interest expenses fell 8% to Rs 5968.02
crore.
Core fee income rises: The core fee income
of the bank increased 12% to Rs 325 crore, while forex income jumped 36% to Rs 577
crore and other non-interest income also zoomed 156% to Rs 338 crore. However,
the trading income plunged 74% to Rs 210 crore in Q3FY2022 causing overall 3% decline
in the non-interest income of the bank to Rs 1835 crore in Q3FY2022.
Net
Total income declined 7% yoy basis to Rs 5243.12 crore in quarter under review.
Expense ratio jumps: Operating expenses
galloped 6% to Rs 3147.38 crore with 18% increase in other operating expenses
to Rs 1315.38 crore, while employee expenses declined 1% to Rs 1832 crore. The
expense ratio increased 7.3 percentages yoy to 60.0% in Q3FY2022 from 52.7% in
Q3FY2021.
Operating
profit declined 21% to Rs 2095.74 crore in the quarter ended December 2021.
Provision dips: The provision for
NPA rose 11% to Rs 693 crore in Q3FY2022, while the provisions for investment
depreciation also increased 128% to Rs 173 crore in Q3FY2022. However, the standard
advances provisions were reversed at Rs 531 crore in Q3FY2022. Overall
provisions declined 81% to Rs 334.93 crore in Q3FY2022 from Rs 855.56 crore in
Q3FY2021.
The dip
in provisions, led to 106% surge in the PBT to Rs 1760.81 crore in the quarter
ended December 2021.
Tax rate rises: An effective tax
rate increased to 41.6% in Q3FY2022 from 36.8% in Q3FY2021. The net profit increased
90% to Rs 1027.45 crore for Q3FY2022.
Financial Performance 9MFY2022:
For the
nine months ended December 2021 (9MFY2022), Bank has posted the net profit of
Rs 2798.43 crore compared with net profit of Rs 1910.10 crore in 9MFY2021. The
net interest income fell 11% to Rs 10075.99 crore, while non-interest income
rose 26% to Rs 6291.56 crore in 9MFY2022. The expense ratio jumped to 54.0% in
9MFY2022 compared to 48.6% in 9MFY2021. The operating expenses increased 11% to
Rs 8844.76 crore, while provision and contingencies dipped 47% to Rs 2881.09 crore.
The profit before tax increased 56% to Rs 4641.70 crore in 9MFY2022. Bank has
made tax provisions of Rs 1843.27 crore, and net profit increased 47% to Rs 2798.43
crore in 9MFY2022.
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Bank of India: Results
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Particulars
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2112
(3)
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2012
(3)
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Var %
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2112
(9)
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2012
(9)
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Var %
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2103
(12)
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2003
(12)
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Var %
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Interest Earned
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9375.92
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10243.10
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-8
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28219.54
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31272.84
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-10
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40599.44
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42353.26
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-4
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Interest Expended
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5968.02
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6503.56
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-8
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18143.55
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19938.87
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-9
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26329.60
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27096.29
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-3
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Net Interest Income
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3407.90
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3739.54
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-9
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10075.99
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11333.97
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-11
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14269.84
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15256.97
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-6
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Other Income
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1835.22
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1897.34
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-3
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6291.56
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5012.93
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26
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7441.49
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6713.07
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11
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Net Total Income
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5243.12
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5636.88
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-7
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16367.55
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16346.90
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0
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21711.33
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21970.04
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-1
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Operating Expenses
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3147.38
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2971.69
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6
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8844.76
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7944.38
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11
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10839.11
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10451.40
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4
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Operating Profits
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2095.74
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2665.19
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-21
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7522.79
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8402.52
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-10
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10872.22
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11518.64
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-6
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Provisions & Contingencies
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334.93
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1809.63
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-81
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2881.09
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5429.14
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-47
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7635.50
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16121.37
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-53
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Profit Before Tax
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1760.81
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855.56
|
106
|
4641.70
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2973.38
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56
|
3236.72
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-4602.73
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-
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Provisions for tax
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733.36
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314.84
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133
|
1843.27
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1063.28
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73
|
1076.42
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-1645.84
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-
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Net Profit
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1027.45
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540.72
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90
|
2798.43
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1910.10
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47
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2160.30
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-2956.89
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-
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EPS*(Rs)
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10.0
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5.3
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9.1
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6.2
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5.3
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-7.2
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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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