Due to a significant decline in treasury revenues, the state-owned Bank of India recorded a 22% decline in net profit at Rs561.5 crore for the June quarter. At the same time a year before, the net profit was Rs720 crore.
According to bank managing director AK Das, the bank's net interest income increased by about 30% to Rs4,072 crore in the reporting quarter from Rs3,145 crore a year earlier, but the decline in profit was caused by a 50% decline in non-interest income, which includes earnings from the sale of investments.
In contrast to the Rs2320 crore, non-interest revenue stood at Rs1152 crore. Operating profit for the bank dropped by 21% to Rs2183 crore.
A crucial profitability indicator known as net interest margin increased to 2.55% for the quarter from 2.16% a year earlier.
With portfolio repricing, Das stated, "We hope to enhance our worldwide NIM to 2.75%." "In comparison to the local NIM of 2.88%, the worldwide NIM of 2.55% appears to be significantly lower. To increase global NIM, we would prefer to refocus our loan growth on the regional market,” said he.
85% of the bank's Rs4.78 lakh crore loan portfolio comes from domestic lending assets. Das added that in order to increase volume, the bank would concentrate on lending to businesses.
Its local advances increased by 9.72% while its global advances increased by 15.20% year over year.
Gross non-performing assets for the lender decreased from 13.51% a year earlier to 9.3% as of the end of June. Net NPA was 2.21% as opposed to 3.35%. Over the same time period, the provision coverage ratio increased from 86.17% to 87.96%.
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Securities Support WhatsApp Number
+91 9892691696
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.