Bank of India’s profit for Q3 rises 12% and net interest income jumps 64%

 

Public sector lender Bank of India’s net profit for the October to December 2022 period improved to Rs 1,151 crore up by 12 percent on a year on year basis and 20 percent sequentially, the company said as it released its quarterly earnings report on Tuesday.

The bank’s operating profit improved to Rs 3,652 crore, up by 74 percent compared to the year ago quarter and 8 percent on a quarter on quarter basis.The lender also saw robust growth in its quarterly net income that rose 64 percent YoY and 10 percent sequentially to Rs 5,596 crore.

Bank of India’s non-interest income was subdued as it came in at Rs 1,432 crore for Q3FY23 against Rs 1,835 crore in Q3FY22. On a sequential basis, it increased from Rs 1,417 crore in Q2FY23.

The bank’s return on assets (RoA) improved to 0.55 percent in Q3FY23 against 0.51 percent in Q3FY22. On a sequential basis, RoA improved by 8 bps from 0.47 percent in Q2FY23, the lender said in a statement.

The current account and savings account (CASA) deposits increased by 3.70 percent annually while CASA% stood at 44.56 percent.

Asset quality

The lender’s gross non-performing asset (NPA) ratio slipped 280 basis points annually to 7.66 percent while the net NPA ratio came in at 1.61 percent, down by 105 bps YoY.

On a sequential basis, gross NPA ratio at Rs 38,884.6 crore for the quarter hit a 29 quarter low compared to 8.51 percent in the previous quarter. The net NPA has declined 13.5 percent to 31-quarter low to Rs 7,646.2 crore from Rs 8,836.2 crore in the last quarter of the fiscal.

The slippage ratio — the rate at which a good loan becomes stressed — stood at 0.27 percent, declined by 20 bps YoY.

Following the result announcement, Bank of India shares slipped more than 6 percent