Public sector lender Bank of India (BOI) reported a
142.3% rise in net profit to Rs 606 crore for the March quarter of 2021-22, on
improvement in net interest margins. It had posted a net profit of Rs 250 crore
in the March quarter of 2020-21, the bank said in a statement.
For 2021-22, the net profit rose by 57.6% to Rs 3,405
crore from Rs 2,160 crore in 2020-21.
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The board recommended a dividend of Rs 2 per equity share
(of the face value of Rs 10) for 2021-22 subject to shareholders’ approval. The
bank’s shares settled 1.71% higher at Rs 47.00 per share on BSE.
The Mumbai-based bank’s net interest income (NII)
expanded by 35.77% to Rs 3,986 crore in the March quarter from Rs 2,936 crore
in the year-ago period. The net interest margin (NIM) improved to 2.58% for the
March quarter as against 2.01% for the same quarter of 2020-21.
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Non-interest income declined from Rs 1,829 crore in March
2021 quarter to Rs 1,587 crore in the March quarter of 2021-22.
Advances rose by 1.35% YoY to Rs 4.57 trillion as of March
2022. The retail agriculture and MSME (RAM) loan portfolio increased 15.7% year
on year to Rs 2.16 trillion as of March 2022, BOI said.
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The deposits increased by 0.12% to Rs 6.27 trillion in
the March quarter. The share of low-cost deposits – Current Account and Savings
Account (CASA) – in domestic deposits stood at 45.02% as of March 31, 2022, up
from 41.27% in March 2021.
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On the asset quality front, Gross Non-Performing Assets
(NPAs) declined to 9.98% as of March 31, 2022, from 13.77% in March 2021. Its
Net NPA stood at 2.34% at end of March 2022 down from 3.35% a year ago.
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The provision
coverage ratio (PCR) for bad loans improved to 87.76% in March 2022 from 86.24%
a year ago. The capital adequacy ratio, as per Basel III, was 17.04% as of
March 31, 2022, up from 14.93% a year ago.