Bank of India (BoI) reported a 15 per cent year-on-year (YoY) decline in standalone net profit at ₹720 crore in the first quarter ended June 30, 2021, due to a decline in net interest income and a rise in provisions towards bad & doubtful and standard assets.

The public sector bank had reported a standalone net profit of ₹844 crore in the year-ago quarter. However, the net profit in the reporting quarter soared about three times vis-a-vis the fourth quarter’s ₹250 crore.

Net interest income (difference between interest earned and interest expended) declined about 10 per cent YoY to ₹3,144 crore (₹3,481 crore in the year-ago quarter).

Total non-interest income (comprising income from commission, exchange & brokerage, profit from the sale of investments, profit from exchange transactions, recovery in written-off accounts, and other non-interest income) rose 39 per cent YoY to ₹2,377 crore (₹1,707 crore).

Within total non-interest income, profit from exchange transactions jumped 126 per cent YoY to ₹754 crore (₹333 crore) and recovery in written-off accounts soared 477 per cent YoY to ₹173 crore (₹30 crore).

Fresh slippages at ₹3,942 crore during the reporting quarter were lower vis-a-vis ₹7,368 crore in the fourth quarter (Q4) FY21 but substantially higher than year ago quarter’s ₹402 crore.

Provisions towards bad, doubtful, and standard assets together were up 16 per cent YoY at ₹1,771 crore (₹1,526 crore).

Gross non-performing assets (GNPAs) level improved to 13.51 per cent of gross advances as of June-end 2021 against 13.91 per cent as of June-end 2020.

Net NPA level too improved to 3.35 per cent of net advances against 3.58 per cent.

Global deposits were up about 5 per cent YoY to ₹6,23,385 crore. Global advances declined a shade (about 0.18 per cent YoY) to ₹4,14,697 crore.

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