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Bank of India has reported 123% growth in net profit at Rs 1350.44 crore
for the quarter ended March 2023 (Q4FY2023). The bank has posted healthy 39% growth
in net interest income (NII), while the core fee income of the bank also
improved 25% in Q4FY2023. The Net Interest Margin (NIM) of the bank improved to
3.15% in Q4FY2023 compared to 2.56% in the corresponding quarter of previous
year.
On business front, the bank as has posted 9% growth
in business with strong 13% surge in loan book. The asset quality of the bank
was stable in Q4FY2023. Bank has improved the credit to deposit ratio to 77.0% at
end March 2023 from 72.8% at end March 2022. The CASA ratio of the bank has moved
up to 44.7% at end March 2023 from 41.5% at end March 2022.
Asset quality improves: The bank has continued to improve asset quality
in Q4FY2023.
The fresh slippages of loans stood at Rs 2625 crore
in Q4FY2023 compared with 1217 crore in previous quarter and Rs 1828 crore in
the corresponding quarter last year.
The recoveries of NPAs stood at Rs 1824 crore,
upgradations at Rs 91 crore and the write-off of loans was at Rs 1909 crore in
Q4FY2023.
The standard restructured loan book of the bank
stood at Rs 10379 crore end March 2023.
Provision coverage ratio was steady at 89.68% at
end March 2023 compared to 90.27% a quarter ago and 87.76% a year ago.
The capital adequacy ratio of the bank stood at 16.3%
with Tier I ratio at 14.4% at end March 2023.
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Asset Quality
Indicators: Bank of India
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Mar-23
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Dec-22
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Sep-22
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Jun-22
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Mar-22
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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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37685.56
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38884.61
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42014.40
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44414.67
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45605.40
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-3
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-17
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Net NPA (Rs Crore)
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8053.61
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7646.19
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8836.18
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9775.23
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9851.93
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5
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-18
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% Gross NPA
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7.31
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7.66
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8.51
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9.30
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9.98
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-35
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-267
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% Net NPA
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1.66
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1.61
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1.92
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2.21
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2.34
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5
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-68
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% PCR
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89.68
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90.27
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88.96
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87.96
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87.76
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-59
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192
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% CRAR - Basel III
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16.28
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15.60
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15.51
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15.61
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16.51
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68
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-23
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% CRAR - Tier I -
Basel III
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14.40
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13.61
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13.38
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13.27
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13.92
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79
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48
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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:
Steady business growth: The business of the bank has increased 9% YoY to
Rs 1185438 crore end March 2023, driven by 13% surge in advances to Rs 515852 crore.
Deposits rose 7% to Rs 669586 crore at end March 2023.
CASA deposits ratio improves: The CASA deposits of the bank jumped 15% YoY to
Rs 299506 crore at end March 2023. The CASA ratio improved to 44.7% at end
March 2023 compared to 41.5% at end March 2022 and 44.6% a quarter ago.
Healthy loan growth: Advances growth was driven by retail loans
rising 17% YoY to Rs 94716 crore at end March 2023, while credit to agriculture
increased 9% to Rs 72391 crore and MSME 9% to Rs 70777 crore at end March 2023.
The corporate credit rose 6% to Rs 193753 crore end March 2023. The overseas
credit has jumped 34% to Rs 84215 crore end March 2023.
Investment
book of the bank increased 16%
YoY to Rs 199571 crore at end March 2023. The AFS book moved up 16% to Rs 44669
crore, while HTM book also gained 16% to Rs 154880 crore at end March 2023. The
duration of the AFS investment portfolio stood at 2.77 years end March 2023
compared with 3.62 years at end March 2022.
Margins improve yoy, ease on sequential basis: The bank has showed sharp 37 bps YoY decline in
cost of deposits to 3.91%, while yield on advances decline only 118 bps YoY to 7.95%
in Q4FY2023. Thus, the NIM has improved 59 bps YoY to 3.15%, while NIM has
declined on sequential basis from 3.28% in Q3FY2023.
Branch expansion: The bank has added 13 branches and 48 ATMs in
Q4FY2023, taking overall tally to 5152 branches and 8214 ATM`s end March 2023.
Book value of the bank stood at Rs 126.9 per share at end March 2023, while
the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 100.9
per share at end March 2023.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 36% increase in the interest
earned at Rs 13449.94 crore, while interest expenses increased 35% to Rs 7926.09
crore in Q4FY2023. NII improved 39% to Rs 5523.85 crore in the quarter ended
March 2023.
Healthy growth in the core fee income: Bank has posted strong 25% growth in core fee
income to Rs 366 crore, while the recoveries and other income declined 10% to
Rs 319 crore and forex income dipped 77% to Rs 153 crore. However, the treasury
income zoomed to Rs 1717 crore, supporting 95% jump in the overall non-interest
income to Rs 3099 crore in the quarter ended March 2023.
Stable expenses ratio: The operating expenses of the bank increased 43%
to Rs 4439.15 crore, as other expenses moved up 18% to Rs 1572.47 crore, while
employee expenses fell 61% to Rs 2866.68 crore in Q4FY2023. Cost to income
ratio improved to 51.5% in Q4FY2023 compared with 55.8% in Q4FY2022, helping
the Operating Profit to increase 70% to Rs 4183.70 crore.
Provisions and contingencies rises: The bank has showed 33% jump in provisions to Rs
2050.53 crore. The loan loss provisions declined 52% to Rs 546 crore, but investment
provisions zoomed 250% to Rs 1130 crore and standard asset provisions surged 351%
to Rs 374 crore.
Effective tax rate rose to 36.7% in Q4FY2023 from 34.5% in Q4FY2022. Net
Profit rose by 123% YoY to Rs 1350.44 crore during quarter ended March 2023.
Financial Performance FY2023:
Bank has posted 18% increase in net profit to Rs
4022.94 crore in the year ended March 2023 (FY2023). The net interest income
increased 44% to Rs 20274.90 crore, while non-interest income declined 10% to
Rs 7099.89 crore. Net total income increased 25% to Rs 27374.79 crore in
FY2023. The operating expenses increased 17% to Rs 13982.17 crore, while
provision and contingencies galloped 62% to Rs 7163.31 crore. Profit before tax
increased 12% to Rs 6229.31 crore in FY2023. The cost-to-income ratio improved
to 51.1% in FY2023 compared to 54.5% in FY2022. An effective tax rate declined
to 35.4% in FY2023 compared to 38.8% in FY2022. The net profit has increased 18%
to Rs 4022.94 crore in FY2023.
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Bank of India: Results
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Particulars
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2303 (3)
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2203 (3)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Interest Earned
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13449.94
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9856.28
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36
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47647.72
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38075.83
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25
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Interest Expended
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7926.09
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5870.18
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35
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27372.82
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24013.73
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14
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Net Interest Income
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5523.85
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3986.10
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39
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20274.90
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14062.10
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44
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Other Income
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3099.00
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1587.17
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95
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7099.89
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7878.73
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-10
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Net Total Income
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8622.85
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5573.27
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55
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27374.79
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21940.83
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25
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Operating Expenses
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4439.15
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3107.61
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43
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13982.17
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11952.38
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17
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Operating Profits
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4183.70
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2465.66
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70
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13392.62
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9988.45
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34
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Provisions &
Contingencies
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2050.53
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1540.61
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33
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7163.31
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4421.70
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62
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Profit Before Tax
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2133.17
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925.05
|
131
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6229.31
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5566.75
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12
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Provision for tax
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782.73
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318.78
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146
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2206.37
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2162.05
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2
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PAT
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1350.44
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606.27
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123
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4022.94
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3404.70
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18
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EPS*(Rs)
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13.2
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5.9
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9.8
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8.3
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Adj BV (Rs)
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100.9
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83.2
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100.9
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83.2
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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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