Bank of India has
reported 9% decline in net profit at Rs 960.00 crore for the quarter ended
September 2022 (Q2FY2023). The bank has posted healthy 44% growth in net
interest income (NII), while the core fee income of the bank declined 2% in
Q2FY2023. The Net Interest Margin (NIM) of the bank improved to 3.04% in
Q2FY2023 compared to 2.42% in the corresponding quarter of previous year.
On
business front, the bank as has posted 11% growth in business with strong 18%
surge in loan book. The asset quality of the bank was stable in Q2FY2023. Bank
has substantially improved the credit to deposit ratio to 76.3% at end
September 2022 from 68.3% at end September 2021. Further, the CASA ratio of the
bank also rose declined to 44.1% at end September 2022 from 43.1% at end
September 2021.
Asset
quality improves: The bank has improved asset quality with lower fresh slippages of loans and healthy reduction of NPAs in Q2FY2023.
The fresh
slippages of loans stood at Rs 1294 crore in Q2FY2023 compared with 2833 crore
in previous quarter and Rs 1307 crore in the corresponding quarter last year.
The
recoveries of NPAs stood at Rs 1340 crore, upgradations at Rs 471 crore and the
write-off of loans was at Rs 1883 crore in Q2FY2023.
The
standard restructured loan book of the bank stood at Rs 14167 crore end
September 2022.
Provision
coverage ratio was steady at 88.96% at end September 2022 compared to 87.96% a
quarter ago and 87.81% a year ago.
The
capital adequacy ratio of the bank stood at 15.5% with Tier I ratio at 13.4% at
end September 2022.
Asset Quality Indicators: Bank of India
|
|
Sep-22
|
Jun-22
|
Mar-22
|
Dec-21
|
Sep-21
|
Variation
|
QoQ
|
YTD
|
YoY
|
Gross NPA (Rs Crore)
|
42014.40
|
44414.67
|
45605.40
|
45759.76
|
50270.13
|
-5
|
-8
|
-16
|
Net NPA (Rs Crore)
|
8836.18
|
9775.23
|
9851.93
|
10708.02
|
10576.22
|
-10
|
-10
|
-16
|
% Gross NPA
|
8.51
|
9.30
|
9.98
|
10.46
|
12.00
|
-79
|
-147
|
-349
|
% Net NPA
|
1.92
|
2.21
|
2.34
|
2.66
|
2.79
|
-29
|
-42
|
-87
|
% PCR
|
88.96
|
87.96
|
87.76
|
86.86
|
87.81
|
100
|
120
|
115
|
% CRAR - Basel III
|
15.51
|
15.61
|
16.51
|
16.66
|
17.05
|
-10
|
-100
|
-154
|
% CRAR - Tier I - Basel III
|
13.38
|
13.27
|
13.92
|
13.60
|
13.88
|
11
|
-54
|
-50
|
Variation in basis points for figures given in percentages and
in % for figures in Rs crore
|
Business
Highlights:
Business
growth improves: The business of the bank has increased 11% YoY to Rs 1141355 crore
end September 2022, driven by 18% surge in advances to Rs 493814 crore.
Deposits rose 6% to Rs 647541 crore at end September 2022.
CASA
deposits ratio rises: The CASA deposits of the bank increased 8%
YoY to Rs 285695 crore at end September 2022. The CASA ratio rose to 44.1% at
end September 2022 compared to 43.1% at end September 2021, while remained
nearly steady from 44.7% a quarter ago.
Strong
loan growth: Advances growth was driven by retail loans rising 23% YoY to Rs
87451 crore at end September 2022, while credit to agriculture increased 13% to
Rs 69667 crore and and MSME 9% to Rs 66530 crore at end September 2022. The
corporate credit has also moved up 8% to Rs 188585 crore end September 2022.
Investment book of the
bank wa flat YoY at Rs 169888 crore at end September 2022. The AFS book dipped 30%
to Rs 28563 crore, while HTM book rose 9% to Rs 141260 crore at end September
2022. The duration of the overall investment portfolio stood at 3.11 years end
September 2022 compared with 3.38 years at end September 2021.
Margins
improve: The bank has showed 21 bps YoY decline in cost of deposits to
3.54%, while yield on advances increased 20 bps YoY to 7.21% in Q2FY2023. Thus,
the NIM has improved 62 bps YoY to 3.04%.
Branch
expansion: The bank has reduced 2 branches in Q2FY2023, taking overall tally
to 5123 branches end September 2022.
Book
value of the bank stood at Rs 120.3 per share at end September 2022,
while the adjusted book value (net of NNPA and 25% of restructured advances)
was Rs 90.1 per share at end September 2022.
Quarterly
Performance
NII rises
as NIM improves: Bank has recorded 21% increase in the interest earned at Rs
11497.40 crore, while interest expenses increased 7% to Rs 6413.80 crore in
Q2FY2023. NII improved 44% to Rs 5083.60 crore in the quarter ended September
2022.
Core fee
income declines: Bank has posted 2% decline in core fee income to Rs 332 crore,
while the recoveries and other income declined 4% to Rs 430 crore and forex
income dipped 69% to Rs 177 crore. Further, the treasury income also declined 65%
to Rs 151 crore, causing 34% dip in the overall non-interest income to Rs
1417.32 crore in the quarter ended September 2022.
Stable
expenses ratio: The operating expenses of the bank increased 5% to Rs 3126.74
crore, as employee expenses increased 11% to Rs 1932.57 crore in Q2FY2023.
Other expenses declined 4% to Rs 1194.17 crore. Cost to income ratio declined
to 48.1% in Q2FY2023 compared with 52.7% in Q2FY2022, helping the Operating
Profit to increase 26% to Rs 3374.18 crore.
Provisions
and contingencies rise: The bank has showed 114% jump in provisions
to Rs 1912.06 crore. The loan loss provisions galloped 176% to Rs 664 crore,
while investment provisions zoomed 341% to Rs 97 crore and standard asset
provisions surged 82% to Rs 1151 crore.
Effective
tax rate declined to 34.3% in Q2FY2023 from 41.1% in Q2FY2022. Net Profit fell by 9%
YoY to Rs 960.00 crore during quarter ended September 2022.
Financial
Performance H1FY2023:
Bank has
posted 14% decline in net profit to Rs 1521.49 crore in the year half year
ended September 2022 (H1FY2023). The net interest income increased 37% to Rs
9156.03 crore, while non-interest income declined 42% to Rs 2569.04 crore,
pushing up net total income by 5% to Rs 11725.07 crore in H1FY2023. The
operating expenses increased 8% to Rs 6168.08 crore, while provision and
contingencies galloped 27% to Rs 3233.80 crore, causing 19% decline in profit
before tax to Rs 2323.19 crore in H1FY2023. The cost-to-income ratio improved
to 52.6% in H1FY2023 compared to 51.2% in H1FY2022. An effective tax rate
declined to 34.5% in H1FY2023 compared to 38.5% in H1FY2022. The net profit has
dipped 14% to Rs 1521.49 crore in H1FY2023.
Bank
of India: Results
|
Particulars
|
2209
(3)
|
2109
(3)
|
Var %
|
2209
(6)
|
2109
(6)
|
Var %
|
2203
(12)
|
2103
(12)
|
Var %
|
Interest Earned
|
11497.40
|
9522.31
|
21
|
21470.04
|
18843.62
|
14
|
38075.83
|
40599.44
|
-6
|
Interest Expended
|
6413.80
|
5998.83
|
7
|
12314.01
|
12175.53
|
1
|
24013.73
|
26329.60
|
-9
|
Net Interest Income
|
5083.60
|
3523.48
|
44
|
9156.03
|
6668.09
|
37
|
14062.10
|
14269.84
|
-1
|
Other Income
|
1417.32
|
2136.28
|
-34
|
2569.04
|
4456.34
|
-42
|
7878.73
|
6841.87
|
15
|
Net Total Income
|
6500.92
|
5659.76
|
15
|
11725.07
|
11124.43
|
5
|
21940.83
|
21111.71
|
4
|
Operating Expenses
|
3126.74
|
2982.16
|
5
|
6168.08
|
5697.38
|
8
|
11952.38
|
10839.11
|
10
|
Operating Profits
|
3374.18
|
2677.60
|
26
|
5556.99
|
5427.05
|
2
|
9988.45
|
10272.60
|
-3
|
Provisions & Contingencies
|
1912.06
|
893.80
|
114
|
3233.80
|
2546.16
|
27
|
4421.70
|
7035.88
|
-37
|
Profit Before Tax
|
1462.12
|
1783.80
|
-18
|
2323.19
|
2880.89
|
-19
|
5566.75
|
3236.72
|
72
|
Provision for tax
|
502.12
|
732.82
|
-31
|
801.70
|
1109.91
|
-28
|
2162.05
|
1076.42
|
101
|
PAT
|
960.00
|
1050.98
|
-9
|
1521.49
|
1770.98
|
-14
|
3404.70
|
2160.30
|
58
|
EPS*(Rs)
|
9.4
|
10.2
|
|
7.4
|
8.6
|
|
8.3
|
5.3
|
|
Adj BV (Rs)
|
90.1
|
75.3
|
|
90.1
|
75.3
|
|
83.2
|
74.4
|
|
*
Annualized on current equity of Rs 4104.31 crore. Face Value: Rs 10, Figures
in Rs crore
|
Source:
Capitaline Corporate Database
|
|