Bank of India

3 Nov 2022 , 06:47 PM

Bank of India has reported 9% decline in net profit at Rs 960.00 crore for the quarter ended September 2022 (Q2FY2023). The bank has posted healthy 44% growth in net interest income (NII), while the core fee income of the bank declined 2% in Q2FY2023. The Net Interest Margin (NIM) of the bank improved to 3.04% in Q2FY2023 compared to 2.42% in the corresponding quarter of previous year. On business front, the bank as has posted 11% growth in business with strong 18% surge in loan book. The asset quality of the bank was stable in Q2FY2023. Bank has substantially improved the credit to deposit ratio to 76.3% at end September 2022 from 68.3% at end September 2021. Further, the CASA ratio of the bank also rose declined to 44.1% at end September 2022 from 43.1% at end September 2021. Asset quality improves: The bank has improved asset quality with lower fresh slippages of loans and healthy reduction of NPAs in Q2FY2023. The fresh slippages of loans stood at Rs 1294 crore in Q2FY2023 compared with 2833 crore in previous quarter and Rs 1307 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 1340 crore, upgradations at Rs 471 crore and the write-off of loans was at Rs 1883 crore in Q2FY2023. The standard restructured loan book of the bank stood at Rs 14167 crore end September 2022. Provision coverage ratio was steady at 88.96% at end September 2022 compared to 87.96% a quarter ago and 87.81% a year ago. The capital adequacy ratio of the bank stood at 15.5% with Tier I ratio at 13.4% at end September 2022.

Asset Quality Indicators: Bank of India
	Sep-22	Jun-22	Mar-22	Dec-21	Sep-21	Variation
QoQ	YTD	YoY
Gross NPA (Rs Crore)	42014.40	44414.67	45605.40	45759.76	50270.13	-5	-8	-16
Net NPA (Rs Crore)	8836.18	9775.23	9851.93	10708.02	10576.22	-10	-10	-16
% Gross NPA	8.51	9.30	9.98	10.46	12.00	-79	-147	-349
% Net NPA	1.92	2.21	2.34	2.66	2.79	-29	-42	-87
% PCR	88.96	87.96	87.76	86.86	87.81	100	120	115
% CRAR – Basel III	15.51	15.61	16.51	16.66	17.05	-10	-100	-154
% CRAR – Tier I – Basel III	13.38	13.27	13.92	13.60	13.88	11	-54	-50
Variation in basis points for figures given in percentages and in % for figures in Rs crore

  Business Highlights: Business growth improves: The business of the bank has increased 11% YoY to Rs 1141355 crore end September 2022, driven by 18% surge in advances to Rs 493814 crore. Deposits rose 6% to Rs 647541 crore at end September 2022. CASA deposits ratio rises: The CASA deposits of the bank increased 8% YoY to Rs 285695 crore at end September 2022. The CASA ratio rose to 44.1% at end September 2022 compared to 43.1% at end September 2021, while remained nearly steady from 44.7% a quarter ago. Strong loan growth: Advances growth was driven by retail loans rising 23% YoY to Rs 87451 crore at end September 2022, while credit to agriculture increased 13% to Rs 69667 crore and and MSME 9% to Rs 66530 crore at end September 2022. The corporate credit has also moved up 8% to Rs 188585 crore end September 2022. Investment book of the bank wa flat YoY at Rs 169888 crore at end September 2022. The AFS book dipped 30% to Rs 28563 crore, while HTM book rose 9% to Rs 141260 crore at end September 2022. The duration of the overall investment portfolio stood at 3.11 years end September 2022 compared with 3.38 years at end September 2021. Margins improve: The bank has showed 21 bps YoY decline in cost of deposits to 3.54%, while yield on advances increased 20 bps YoY to 7.21% in Q2FY2023. Thus, the NIM has improved 62 bps YoY to 3.04%. Branch expansion: The bank has reduced 2 branches in Q2FY2023, taking overall tally to 5123 branches end September 2022. Book value of the bank stood at Rs 120.3 per share at end September 2022, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 90.1 per share at end September 2022. Quarterly Performance NII rises as NIM improves: Bank has recorded 21% increase in the interest earned at Rs 11497.40 crore, while interest expenses increased 7% to Rs 6413.80 crore in Q2FY2023. NII improved 44% to Rs 5083.60 crore in the quarter ended September 2022. Core fee income declines: Bank has posted 2% decline in core fee income to Rs 332 crore, while the recoveries and other income declined 4% to Rs 430 crore and forex income dipped 69% to Rs 177 crore. Further, the treasury income also declined 65% to Rs 151 crore, causing 34% dip in the overall non-interest income to Rs 1417.32 crore in the quarter ended September 2022. Stable expenses ratio: The operating expenses of the bank increased 5% to Rs 3126.74 crore, as employee expenses increased 11% to Rs 1932.57 crore in Q2FY2023. Other expenses declined 4% to Rs 1194.17 crore. Cost to income ratio declined to 48.1% in Q2FY2023 compared with 52.7% in Q2FY2022, helping the Operating Profit to increase 26% to Rs 3374.18 crore. Provisions and contingencies rise: The bank has showed 114% jump in provisions to Rs 1912.06 crore. The loan loss provisions galloped 176% to Rs 664 crore, while investment provisions zoomed 341% to Rs 97 crore and standard asset provisions surged 82% to Rs 1151 crore. Effective tax rate declined to 34.3% in Q2FY2023 from 41.1% in Q2FY2022. Net Profit fell by 9% YoY to Rs 960.00 crore during quarter ended September 2022. Financial Performance H1FY2023: Bank has posted 14% decline in net profit to Rs 1521.49 crore in the year half year ended September 2022 (H1FY2023). The net interest income increased 37% to Rs 9156.03 crore, while non-interest income declined 42% to Rs 2569.04 crore, pushing up net total income by 5% to Rs 11725.07 crore in H1FY2023. The operating expenses increased 8% to Rs 6168.08 crore, while provision and contingencies galloped 27% to Rs 3233.80 crore, causing 19% decline in profit before tax to Rs 2323.19 crore in H1FY2023. The cost-to-income ratio improved to 52.6% in H1FY2023 compared to 51.2% in H1FY2022. An effective tax rate declined to 34.5% in H1FY2023 compared to 38.5% in H1FY2022. The net profit has dipped 14% to Rs 1521.49 crore in H1FY2023.

Bank of India: Results
Particulars	2209 (3)	2109 (3)	Var %	2209 (6)	2109 (6)	Var %	2203 (12)	2103 (12)	Var %
Interest Earned	11497.40	9522.31	21	21470.04	18843.62	14	38075.83	40599.44	-6
Interest Expended	6413.80	5998.83	7	12314.01	12175.53	1	24013.73	26329.60	-9
Net Interest Income	5083.60	3523.48	44	9156.03	6668.09	37	14062.10	14269.84	-1
Other Income	1417.32	2136.28	-34	2569.04	4456.34	-42	7878.73	6841.87	15
Net Total Income	6500.92	5659.76	15	11725.07	11124.43	5	21940.83	21111.71	4
Operating Expenses	3126.74	2982.16	5	6168.08	5697.38	8	11952.38	10839.11	10
Operating Profits	3374.18	2677.60	26	5556.99	5427.05	2	9988.45	10272.60	-3
Provisions & Contingencies	1912.06	893.80	114	3233.80	2546.16	27	4421.70	7035.88	-37
Profit Before Tax	1462.12	1783.80	-18	2323.19	2880.89	-19	5566.75	3236.72	72
Provision for tax	502.12	732.82	-31	801.70	1109.91	-28	2162.05	1076.42	101
PAT	960.00	1050.98	-9	1521.49	1770.98	-14	3404.70	2160.30	58
EPS*(Rs)	9.4	10.2		7.4	8.6		8.3	5.3
Adj BV (Rs)	90.1	75.3		90.1	75.3		83.2	74.4
* Annualized on current equity of Rs 4104.31 crore. Face Value: Rs 10, Figures in Rs crore
Source: Capitaline Corporate Database

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