Bank of India posts 20 pc growth in profit sequentially
Jan 17, 2023
Mumbai (Maharashtra) [India], January 17 : Public sector lender Bank of India on Tuesday posted a rise by 20 per cent sequentially (quarter-on-quarter) in net profit to Rs 1,151 crore in the quarter ended December 31, 2022, (Q3FY23).
The lender in a statement said it demonstrated significant improvement in various important parameters during the third quarter.
The bank said its operating profit jumped to Rs 3,652 crore, up by 74 per cent year-on-year (YoY) and by 8 per cent sequentially. The return on assets (RoA) stood at 55 bps.
The net interest margin (NIM) is reported at 3.28 per cent, driven by the domestic NIM of 3.72 per cent. The growth in profitability is mainly contributed by the growth in advances, more particularly on growth in risk assessment model (RAM) and corporate segments.
With better credit offtake, the lender said considerable growth is witnessed in NIM, which stood at 3.28 per cent thereby improving by 101 bps YoY.
The bank said its NII stood at Rs 5,596 crore, which was up by 64 per cent YoY and 10 per cent sequentially. According to the statement, yield on advances was at 7.67 per cent, increased by 46 bps sequentially and 65 bps YoY.
The bank said RAM advances grew by 13.24 per cent on YoY basis and it constitutes 54.14 per cent of gross advances. Current account and savings account (CASA) deposits for domestic increased by 3.70 per cent on YoY basis and the domestic CASA is reported at 44.56 per cent on aggregate deposits, the bank said.
On the recovery front, the bank said it took several steps which brought down gross non-performing assets (NPA) to 7.66 per cent with a significant decline by 280 bps on YoY basis and also reduced the gross NPA on absolute number by Rs 6,875 crore on YoY basis.
The net NPA has also declined to 1.61 per cent, down by 105 bps on YoY basis, the bank said. Slippage ratio, according to the lender, stood at 0.27 per cent declined by 20 bps YoY. The lender said both the gross NPA and net NPA have reduced on absolute and percentage basis on YoY and quarter-on-quarter (QoQ) basis.
