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Bank of India has posted net profit of Rs 250.19 crore in the quarter ended March 2021 (Q4FY2021) compared with net loss of Rs 3571.41 crore in the corresponding quarter last year, driven by decline in the provisions. However, the bank has exhibited sharp 23% decline in the net interest income, while it has also witnessed 9% decline in the operating profit.
The bank has exhibited sharp moderation in the business growth to 7%, with 1% decline in the loan book. The net interest margin of the bank has declined sharply to 2.01% in Q4FY2021 from 2.58% in previous quarter and 2.90% in the corresponding quarter last year.
However, the CASA deposits ratio of the bank was nearly flat from a year ago level. The bank has maintained stabled asset quality in the quarter ended March 2021.
Asset quality stable: The bank has maintained stable asset quality with lower NPA ratio's in Q4FY2021.
Fresh slippages were at Rs 7368 crore in the quarter ended March 2021, while the recoveries, upgradations, write-offs and sales of bad loans together were at Rs 5830 crore in Q4FY2021.
Outstanding standard restructured advances of the bank stood at Rs 11120 crore (2.7% of global advances) at end March 2021.
Risk weighted asset of the bank grew 2% to Rs 301305 crore at end March 2021.
| Asset Quality Indicators: Bank of India |
|
Mar-21 |
Dec-20 |
Sep-20 |
Jun-20 |
Mar-20 |
Variation |
| QoQ |
YoY |
| Gross NPA (Rs Crore) |
56534.95 |
54997.03 |
56231.76 |
57787.78 |
61549.93 |
3 |
-8 |
| Net NPA (Rs Crore) |
12262.03 |
9077.32 |
10443.71 |
13274.95 |
14320.10 |
35 |
-14 |
| % Gross NPA |
13.77 |
13.25 |
13.79 |
13.91 |
14.78 |
52 |
-101 |
| % Net NPA |
3.35 |
2.46 |
2.89 |
3.58 |
3.88 |
89 |
-53 |
| % Provision Coverage Ratio |
86.24 |
89.32 |
87.91 |
84.87 |
83.75 |
-308 |
249 |
| % CRAR - Basel III |
14.93 |
12.51 |
12.80 |
12.76 |
13.10 |
242 |
183 |
| Tier I - Basel III % |
11.96 |
9.44 |
9.67 |
9.48 |
9.90 |
252 |
206 |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore |
Business Performance:
Business growth decelerates: Business of the bank rose at moderated pace of 7% at Rs 1037549 crore at end March 2021. During the quarter, the domestic business rose 9% at Rs 913496 crore, while foreign business declined 6% to Rs 124053 crore at end March 2021. Deposits rose 13% at Rs 627113 crore, while the advances fell 1% to Rs 410439 crore at end March 2021.
CASA improves: CASA deposits of bank increased 14% to Rs 224669 crore. Current account deposits rose 8% at Rs 28166 crore, while saving account deposits improved 14% to Rs 196503 crore. The CASA ratio improved to 41.3% at end March 2021 from 40.6% a quarter ago and 41.2% a year ago.
Domestic loan growth slows: The domestic advances book expanded at moderated pace of 1% to Rs 362361 crore at end March 2021. Within the domestic advances, the retail credit grew 12% to Rs 68058 crore, while credit to agriculture increased 7% to Rs 55698 crore at end March 2021.
Investment book of the bank increased 19% to Rs 185877 crore at end March 2021, as SLR investment rose 20% to Rs 141027 crore at end March 2021. The AFS investment increased 17% to Rs 52803 crore at end March 2021.
NIM dips: Global NIM of the bank declined to 2.01% in Q4FY2021 from 2.58% in the previous quarter and 2.90% in corresponding quarter last year. Yield on advances dipped to 7.48%, while cost of deposits rose to 4.10% in Q4FY2021.
Bank has reduced 2 branches and 199 ATMs in the quarter ended March 2021. Bank has the network of 5084 branches and 5551 ATMs at end March 2021
Book Value per share stood at Rs 120.3 per share at end March 2021, while adjusted book value (net of NNPA and 25% of restructured advances) stood at Rs 74.4 per share at end March 2021.
Quarterly Performance:
NII declines as advances and NIM declines: For the quarter ended March 2021, the NII of the bank declined 23% to Rs 2935.86 crore, Interest earned declined 11% to Rs 9326.60 crore, while interest expenses fell 5% to Rs 6390.74 crore.
Core fee income dips: The core fee income of the bank dipped 3% to Rs 316 crore, while forex income surged 70% to Rs 712 crore and trading income moved up 19% to Rs 290 crore in Q4FY2021. The other non-interest income rose 6% to Rs 477 crore, leading to overall 22% rise in the non-interest income of the bank to Rs 2053 crore in Q4FY2021.
Net Total income declined 9% yoy basis to Rs 4989.10 crore in quarter under review.
Expense ratio jumps: Operating expenses galloped 2% to Rs 2894.73 crore with 7% increase in other operating expenses to Rs 1231.32 crore, while employee expenses eased 1% to Rs 1663.41 crore. The expense ratio increased 6.4 percentages yoy to 58.0% in Q4FY2021 from 51.6% in Q4FY2020.
Operating profit declined 21% to Rs 2094.37 crore in the quarter ended March 2021.
Provision declines: The provision for NPA dipped 58% to Rs 3089 crore in Q4FY2021, while the bank has written back standard advances provisions of Rs 1813 crore in Q4FY2021. The provisions for investment depreciation zoomed 833% to Rs 812 crore in Q4FY2021. Overall provisions declined to Rs 1831.04 crore in Q4FY2021.
The decline in provisions, led to PBT of Rs 263.33 crore in the quarter ended March 2021.
Tax provisions were Rs 13.14 crore in Q4FY2021, reducing the net profit to Rs 250.19 crore for Q4FY2021.
Financial Performance FY2021:
For the year ended March 2021 (FY2021), Bank has posted the net profit of Rs 2160.30 crore compared with net loss of Rs 2956.89 crore in FY2020. The net interest income fell 6% to Rs 14269.84 crore, while non-interest income rose 11% to Rs 7441.49 crore in FY2021. The expense ratio rose to 49.9% in FY2021 compared to 47.6% in FY2020. The operating expenses moved up 4% to Rs 10839.11 crore, while provision and contingencies dipped 53% to Rs 7635.50 crore. The profit before tax stood at Rs 3236.72 crore in FY2021. Bank has made tax provisions of Rs 1076.42 crore, and net profit stood at Rs 2160.30 crore in FY2021.
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