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Bank of India

Stable performance

November 03, 2021 9:40 IST | capital market
Bank of India has posted 100% growth in net profit to Rs 1050.98 crore in the quarter ended September 2021 (Q2FY2022), driven by strong growth in the non-interest income and decline in provisions. The bank has exhibited an improvement in the loan growth and asset quality in Q2FY2022. The net interest margin improved on sequential basis, while margin declined over a year ago level. The CASA deposit ratio was stable at 43.11% end September 2021.

Asset quality improves: The fresh slippages of advances declined supporting an improvement in the asset quality of the bank in Q2FY2022.

Fresh slippages declined to Rs 1307 crore in the quarter ended September 2021, while the recoveries, upgradations, write-offs and sales of bad loans together were at Rs 7079 crore in Q2FY2022.

Outstanding standard restructured advances of the bank stood at Rs 21275 crore (5.1% of global advances) at end September 2021.

Risk weighted asset of the bank was flat at Rs 296127 crore at end September 2021.

Asset Quality Indicators: Bank of India

 

Sep-21

Jun-21

Mar-21

Dec-20

Sep-20

Variation

QoQ

YTD

YoY

Gross NPA (Rs Crore)

50270.13

56041.63

56534.95

54997.03

56231.76

-10

-11

-11

Net NPA (Rs Crore)

10576.22

12424.13

12262.03

9077.32

10443.71

-15

-14

1

% Gross NPA

12.00

13.51

13.77

13.25

13.79

-151

-177

-179

% Net NPA

2.79

3.35

3.35

2.46

2.89

-56

-56

-10

% Provision Coverage Ratio

87.81

86.17

86.24

89.32

87.91

164

157

-10

% CRAR - Basel III

17.05

15.07

14.93

12.51

12.80

198

212

425

    Tier I - Basel III %

13.88

11.97

11.96

9.44

9.67

191

192

421

Variation in basis points for figures given in percentages and in % for figures in Rs crore

 Business Performance:

Business growth improves: Business of the bank rose 2% at Rs 1031856 crore at end September 2021. During the quarter, the domestic business rose 2% at Rs 914307 crore, while foreign business declined 3% to Rs 117549 crore at end September 2021. Deposits rose 1% at Rs 612961 crore, while the advances increased 3% to Rs 418895 crore at end September 2021.

CASA stable: CASA deposits of bank increased 12% to Rs 232797 crore. Current account deposits rose 14% at Rs 27737 crore, while saving account deposits improved 12% to Rs 205060 crore. The CASA ratio was at 43.1% at end September 2021 from 43.2% a quarter ago and 39.5% a year ago.

Steady domestic loan growth: The domestic advances book expanded 2% to Rs 368573 crore at end September 2021. Within the domestic advances, the retail credit grew 11% to Rs 70887 crore, while corporate credit declined 12% to Rs 122390 crore. Agri credit increased 14% to Rs 61886 crore, while MSME credit rose 7% to Rs 64984 crore at end September 2021.

Investment book of the bank declined 6% to Rs 169800 crore at end September 2021, as AFS investment dipped 29% to Rs 40532 crore. SLR investment rose 2% to Rs 140775 crore at end September 2021.

NIM improves: Global NIM of the bank rose to 2.42% in Q2FY2022 from 2.16% in the previous quarter and declined from 2.66% in corresponding quarter last year. Yield on advances moved up 34 bps qoq to 7.01%, while cost of deposits eased 4 bps qoq to 3.75% in Q2FY2022 helping to improve NIMs on sequential basis.

Book Value per share stood at Rs 114.0 per share at end September 2021, while adjusted book value (net of NNPA and 25% of restructured advances) stood at Rs 75.3 per share at end September 2021.

Quarterly Performance:

NII declines on yoy decline in margins: For the quarter ended September 2021, the NII of the bank declined 14% to Rs 3523.48 crore. Interest earned declined 12% to Rs 9522.31 crore, while interest expenses fell 10% to Rs 5998.83 crore.

Core fee income jumps: The core fee income of the bank jumped 23% to Rs 340 crore, while forex income galloped 36% to Rs 568 crore and trading income jumped 68% to Rs 429 crore in Q2FY2022. The other non-interest income also jumped 112% to Rs 231 crore leading to overall 59% surge in the non-interest income of the bank to Rs 2136 crore in Q2FY2022.

Net Total income rose 4% yoy basis to Rs 5659.76 crore in quarter under review.

Expense ratio jumps: Operating expenses galloped 13% to Rs 2982.16 crore with 11% increase in other operating expenses to Rs 1245.72 crore, while employee expenses moved up 16% to Rs 1736.44 crore.

The expense ratio increased 4.5 percentages yoy to 52.7% in Q2FY2022 from 48.2% in Q2FY2021.

Operating profit declined 5% to Rs 2677.60 crore in the quarter ended September 2021.

Provision declines: The provision for NPA dipped 89% to Rs 241 crore in Q2FY2022, while the provisions for investment depreciation rebounded to Rs 22 crore and the standard advances provisions to Rs 631 crore in Q2FY2022. Overall provisions declined 56% to Rs 893.80 crore in Q2FY2022.

With the dip in provisions, PBT surged 127% to Rs 1783.80 crore in the quarter ended September 2021.

Tax provisions jumped to Rs 732.82 crore in Q2FY2022 from Rs 259.60 crore in Q2FY2021. The net profit increased 100% to Rs 1050.98 crore for Q2FY2022.

Financial Performance H1FY2022:

For the half year ended September 2021 (H1FY2022), Bank has posted the net profit of Rs 1770.98 crore compared with net profit of Rs 1369.38 crore in H1FY2021. The net interest income declined 12% to Rs 6668.09 crore, while non-interest income rose 43% to Rs 4456.34 crore in H1FY2022. The expense ratio improved to 51.2% in H1FY2022 compared to 46.4% in H1FY2021. The operating expenses increased 15% to Rs 5697.38 crore, while provision and contingencies dipped 30% to Rs 2546.16 crore. The profit before tax stood at Rs 2880.89 crore in H1FY2022. Bank has made tax provisions of Rs 1109.91 crore, and net profit stood at Rs 1770.98 crore in H1FY2022.

Bank of India: Results

Particulars

2109 (3)

2009 (3)

Var %

2109 (6)

2009 (6)

Var %

2103 (12)

2003 (12)

Var %

Interest Earned

9522.31

10795.51

-12

18843.62

21029.75

-10

40599.44

42353.26

-4

Interest Expended

5998.83

6682.21

-10

12175.53

13435.31

-9

26329.60

27096.29

-3

Net Interest Income

3523.48

4113.30

-14

6668.09

7594.44

-12

14269.84

15256.97

-6

Other Income

2136.28

1346.01

59

4456.34

3115.58

43

7441.49

6713.07

11

Net Total Income

5659.76

5459.31

4

11124.43

10710.02

4

21711.33

21970.04

-1

Operating Expenses

2982.16

2628.78

13

5697.38

4972.68

15

10839.11

10451.40

4

Operating Profits

2677.60

2830.53

-5

5427.05

5737.34

-5

10872.22

11518.64

-6

Provisions & Contingencies

893.80

2045.15

-56

2546.16

3619.51

-30

7635.50

16121.37

-53

Profit Before Tax

1783.80

785.38

127

2880.89

2117.83

36

3236.72

-4602.73

LP

Provisions for tax

732.82

259.60

182

1109.91

748.45

48

1076.42

-1645.84

PL

Net Profit

1050.98

525.78

100

1770.98

1369.38

29

2160.30

-2956.89

LP

EPS*(Rs)

10.2

5.1

 

8.6

6.7

 

5.3

-7.2

 

* Annualized on current equity of Rs 4104.31 crore. Face Value: Rs 10, Figures in Rs crore, LP : Loss to profit ; PL : Profit to loss

Source: Capitaline Corporate Database

 

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