Bank of India Q2 PAT rises 99.9% on lower provisions, higher other income

On liabilities side, Bank of India’s home deposits grew 2.5% connected twelvemonth to Rs 5,45,734 crore.

Bank of India (BoI) connected Tuesday reported a astir 100% year-on-year emergence successful nett net successful the September 4th to Rs.1,051 crore connected the backmost of little provisions and higher different income.

The lender’s full provisions earlier taxation fell 56.3% twelvemonth connected twelvemonth (YoY) to Rs 894 crore successful the July-September period.

Lower provisions were connected relationship of improving plus quality. As connected September 30, the lender’s gross non-performing assets (NPAs) stood astatine Rs 50,270 crore, little than Rs 56,232 crore a twelvemonth ago. The slope saw caller slippages of Rs 1,307 crore successful the reporting 4th — little than Rs 3,942 crore successful the erstwhile quarter.

In a station net league connected Tuesday, the bank’s absorption said it had created 50% proviso for its Rs 1,024-crore nonstop vulnerability to SREI radical companies, whose boards were precocious superseded by the Reserve Bank of India.

In percent terms, BoI’s gross and nett atrocious indebtedness ratios improved to 12% and 2.79%, respectively, arsenic connected September-end from 13.51% and 3.35% arsenic connected June 30, respectively.

Going forward, the slope aims to little the gross NPA ratio beneath 10% and the nett NPA ratio by astir 2%, said MD and CEO Atanu Kumar Das.

The bank’s nett involvement income (NII) stood astatine Rs 3,523 crore successful the reporting quarter, little by 14.3% connected year. The home nett involvement borderline (NIM) successful July-September was 2.65%, little than 2.88% a twelvemonth ago. The superior adequacy ratio (CAR), arsenic connected September 30, stood astatine 17.05%, of which Tier I ratio was 13.88% and Tier II ratio stood astatine 3.17%.

As connected September 30, Bank of India’s proviso sum ratio stood astatine 87.81%, portion recognition outgo was 0.26%. Other income, that includes fees from third-party, roseate 37% connected a yearly ground to Rs 2136.28 crore.

The lender’s planetary advances accrued 2.7% YoY to Rs 4,18,895 crore. Of these, home loans stood astatine Rs 3,68,573 crore, higher by 1.6% connected year. Retail, agriculture and micro, tiny and mean enterprises loans formed 54% of the lender’s home indebtedness book.

“There volition beryllium acceleration successful advances going guardant done a bid of outreach campaigns, which we person conducted for the past 2 months and which we volition proceed successful the coming months. We expect our wide advances to turn by 6-7% during the year,” Das said.

On liabilities side, Bank of India’s home deposits grew 2.5% connected twelvemonth to Rs 5,45,734 crore.