Bank of India’s June-quarter net profit rose three-fold to Rs 843.60 crore as provisions fell and non-interest income spiked.
The state-owned bank had posted a net profit of Rs 242.62 crore in the same period of the previous year. This rise in its bottomline came as total provisions fell to Rs 1,512.07 crore from Rs 1,911.98 crore a year ago and a growth in treasury income resulted in its non-interest revenues increasing to Rs 1,707 crore during the period from Rs 1,195 crore a year ago, indicating a growth of almost 43 per cent.
BoI, however, disclosed that as a matter of prudence it has made an provision of Rs 620.30 crore in the stressed accounts where moratorium because of the pandemic was extended. The bank held total provisions of Rs 1,034.78 crore as on June 30 in this regard. According to the lender, these provisions are higher than RBI requirements.
On the assets front, the bank saw an improvement with gross non-performing assets (NPAs) declining to 13.91 per cent of gross advances as on June 30, 2020 against 16.50 per cent in the same period a year ago.
In absolute terms, gross bad loans stood at Rs 57,787.78 crore, which was lower than Rs 62,068.40 crore in the year ago period. Slippages too fell significantly on a sequential basis to Rs 402 crore from Rs 2764 crore in the preceding three months. However, loans that were written off rose to Rs 3,505 crore from Rs 1,638 crore in the January-March quarter.
The quarter was marked by a marginal fall in its core net interest income to Rs 3,481 crore from Rs 3,485 crore in the year-ago period. BoI said that during the period, domestic advances increased almost 11 per cent from Rs 3,24,198 crore in June 2019 to Rs 3,59,715 crore. While the amount of retail credit stood at Rs 61,605 crore against Rs 56897 crore in the same period of the previous year, personal, auto and home loans showed growth.
Domestic deposits rose 21.19 per cent from Rs 4,27,064 crore to Rs 5,17,577 crore. Of this, the low-cost current account and saving account deposits increased 15 per cent from Rs 1,80,186 crore to Rs 2,07,370 crore in June 2020 and the proportion of these deposits stood at 40.60 per cent.
The BoI stock ended 2 per cent higher at Rs 48.05.