BOI's profit after tax in June quarter goes down y-o-y by 22% to Rs561.5 crore

3 Aug 2022 , 08:08 AM

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%.