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Bank of India has reported 12% growth in net profit at Rs 1151.01
crore for the quarter ended December 2022 (Q3FY2023). The bank has posted strong
64% growth in net interest income (NII), while the core fee income of the bank
also improved 18% in Q3FY2023. The Net Interest Margin (NIM) of the bank
improved to 3.28% in Q3FY2023 compared to 2.27% in the corresponding quarter of
previous year.
The bank was required
to create provision of Rs 1419 crore for NPA divergence over last 3 quarters of
FY23 in proportion of Rs 473 crore. The bank had created provision of Rs 473
crore in Q2FY23, while it has front loaded provision of Q4FY23 to Q3FY23 and
created full provision of Rs 976 crore in Q3FY223 requiring no further
provisions in Q4FY23. The bank has utilized strong operating profit pool to
create accelerated provisions. However, the high provision in Q3FY2023 has
moderated net profit growth.
On business front, the bank as has posted 10% growth
in business with strong 16% surge in loan book. The asset quality of the bank has
further improved in Q3FY2023. Bank has substantially improved the credit to
deposit ratio to 77.7% at end December 2022 from 70.2% at end December 2021. The
CASA ratio of the bank has also improved to 44.6% at end December 2022 from 44.1%
at end December 2021.
Asset quality improves: The bank has improved asset quality with the
reduction in NPA ratios in Q3FY2023.
The fresh slippages of loans stood at Rs 1217 crore
in Q3FY2023 compared with 1294 crore in previous quarter and Rs 1845 crore in
the corresponding quarter last year.
The recoveries of NPAs stood at Rs 1647 crore,
upgradations at Rs 177 crore and the write-off of loans was at Rs 2522 crore in
Q3FY2023.
The standard restructured loan book of the bank declined
to Rs 12637 crore end December 2022 from Rs 14167 crore end September 2022.
Provision coverage ratio improved to 90.27% at
end December 2022 compared to 88.96% a quarter ago and 86.86% a year ago.
The capital adequacy ratio of the bank stood at 15.6%
with Tier I ratio at 13.6% at end December 2022.
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Asset Quality
Indicators: Bank of India
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|
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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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Dec-21
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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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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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45759.76
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-7
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-15
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-15
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Net NPA (Rs Crore)
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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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10708.02
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-13
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-22
|
-29
|
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% Gross NPA
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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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10.46
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-85
|
-232
|
-280
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% Net NPA
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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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2.66
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-31
|
-73
|
-105
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% PCR
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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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86.86
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131
|
251
|
341
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% CRAR - Basel III
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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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16.66
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9
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-91
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-106
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% CRAR - Tier I -
Basel III
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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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13.60
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23
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-31
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1
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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:
Healthy business growth: The business of the bank has increased 10% YoY
to Rs 1161441 crore end December 2022, driven by 16% surge in advances to cross
Rs 5 lakh crore mark to Rs 507750 crore. Deposits rose 5% to Rs 653691 crore at
end December 2022.
CASA deposits ratio rises against industry
declining trend: The CASA deposits of the
bank rose 6% YoY to Rs 291285 crore at end December 2022. The CASA ratio rose to
44.6% at end December 2022 compared to 44.1% at end December 2021, while
declined from 44.1% a quarter ago.
Strong loan growth: Advances growth was driven by retail loans
rising 21% YoY to Rs 91371 crore at end December 2022, while credit to
agriculture increased 9% to Rs 70334 crore and MSME 3% to Rs 69250 crore at end
December 2022. The corporate credit has moved up 12% to Rs 195667 crore end
December 2022.
The retail loan book
growth is driven by home loans rising 18%, vehicle loans 42%, personal loans
45%, mortgage loans 14% and education loans 7%.
The bank has
continued to exceed the priority sector lending target of 40% with the
achievement of 43.19% end December 2022. The share of top rated exposure of A
and above has increased to 60.45% from 59.17% a quarter ago.
Investment
book of the bank increased 8%
YoY to Rs 183002 crore at end December 2022. The AFS book dipped 11% to Rs 33642
crore, while HTM book rose 13% to Rs 149116 crore at end December 2022. The
duration of the overall investment portfolio stood at 3.33 years end December
2022 compared with 3.84 years at end December 2021.
Margins improve: The bank has showed 3 bps YoY decline in cost of
deposits to 3.72%, while yield on advances surged 65 bps YoY to 7.67% in
Q3FY2023. Thus, the NIM has improved 101 bps YoY to 3.28% .
Branch expansion: The bank has network of 5123 branches and 8166 ATM`s
end December 2022.
Book value of the bank stood at Rs 123.9 per share at end December 2022,
while the adjusted book value (net of NNPA and 25% of restructured advances)
was Rs 97.5 per share at end December 2022.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 36% increase in the interest
earned at Rs 12727.75 crore, while interest expenses increased 20% to Rs 7132.72
crore in Q3FY2023. NII improved 64% to Rs 5595.03 crore in the quarter ended
December 2022.
Healthy growth in the core fee income: Bank has posted strong 18% growth in core fee
income to Rs 384 crore. However, the treasury income declined 45% to Rs 115 crore, while the recoveries and other income also
fell 14% to Rs 290 crore and forex income dipped 58% to Rs 243 crore causing 22%
dip in the overall non-interest income to Rs 1431.85 crore in the quarter ended
December 2022.
Expenses ratio improves: The operating expenses of the bank increased 7% to
Rs 3374.95 crore, as other expenses moved up 21% to Rs 1591.52 crore, while
employee expenses fell 3% to Rs 1783.43 crore in Q3FY2023. Cost to income ratio
dipped 48.0% in Q3FY2023 compared with 60.0% in Q3FY2022, helping the Operating
Profit to increase 74% to Rs 3651.93 crore.
Provisions and contingencies rise: The bank has showed 461% jump in provisions to
Rs 1878.98 crore. The loan loss provisions galloped 57% to Rs 1087 crore, while
standard asset provisions rebounded to Rs 806 crore. The bank has written back investment
provisions of Rs 14 crore in Q3FY2023.
Effective tax rate declined to 35.1% in Q3FY2023 from 41.6% in Q3FY2022. Net
Profit rose by 12% YoY to Rs 1151.01 crore during quarter ended December 2022.
Financial Performance 9MFY2023:
Bank has posted 5% decline in net profit to Rs 2672.50
crore in the nine months ended December 2022 (9MFY2023). The net interest
income increased 46% to Rs 14751.06 crore, while non-interest income declined 36%
to Rs 4000.89 crore. Net total income rose by 15% to Rs 18751.95 crore in
9MFY2023. The operating expenses increased 8% to Rs 9543.03 crore, while
provision and contingencies galloped 77% to Rs 5112.78 crore, causing 12%
decline in profit before tax to Rs 4096.14 crore in 9MFY2023. The
cost-to-income ratio improved to 50.9% in 9MFY2023 compared to 54.0% in
9MFY2022. An effective tax rate declined to 34.8% in 9MFY2023 compared to 39.7%
in 9MFY2022. The net profit has eased 5% to Rs 2672.50 crore in 9MFY2023.
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Bank of India: Results
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Particulars
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2212 (3)
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2112 (3)
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Var %
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2212 (9)
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2112 (9)
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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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12727.75
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9375.92
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36
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34197.79
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28219.54
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21
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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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7132.72
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5968.02
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20
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19446.73
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18143.55
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7
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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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5595.03
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3407.90
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64
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14751.06
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10075.99
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46
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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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1431.85
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1835.22
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-22
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4000.89
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6291.56
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-36
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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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7026.88
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5243.12
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34
|
18751.95
|
16367.55
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15
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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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3374.95
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3147.38
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7
|
9543.03
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8844.76
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8
|
11952.38
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10839.11
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10
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Operating Profits
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3651.93
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2095.74
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74
|
9208.92
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7522.79
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22
|
9988.45
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10272.60
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-3
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Provisions &
Contingencies
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1878.98
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334.93
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461
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5112.78
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2881.09
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77
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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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1772.95
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1760.81
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1
|
4096.14
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4641.70
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-12
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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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621.94
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733.36
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-15
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1423.64
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1843.27
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-23
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2162.05
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1076.42
|
101
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PAT
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1151.01
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1027.45
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12
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2672.50
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2798.43
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-5
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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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11.2
|
10.0
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8.7
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9.1
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8.3
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5.3
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Adj BV (Rs)
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97.5
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78.7
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97.5
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78.7
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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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