Mumbai, February 4

Bank of India (BoI) reported a 90 per cent year-on-year (yoy) jump in third quarter standalone net profit at ₹1,027 crore against ₹541 crore in the year ago period, supported by a steep drop in total provisions.

The public sector bank’s net interest income (difference between interest earned and interest expended) was down about 9 per cent yoy to ₹3,408 crore (₹3,739 crore in the year ago quarter).

Other income, comprising fee-based income, treasury income and miscellaneous income, declined about 3 per cent yoy to ₹1,835 crore (₹1,897 crore).

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A break-up of the total provisions shows that provisions towards bad & doubtful assets rose 11 per cent yoy to ₹693 crore (₹623 crore) and that towards depreciation on non-performing investments jumped 284 per cent yoy to ₹173 crore (₹45 crore).

The bank saw a provision write-back on standard assets and others of ₹531 crore against provisions of ₹1,142 crore in the year-ago period.

The gross non-performing assets (NPAs) position improved to 10.46 per cent of gross advances in the reporting quarter against 12 per cent in the preceding quarter. The Net NPA (NNPA) position also improved to 2.66 per cent of net advances against 2.79 per cent.

BoI reported fresh slippages of ₹1,760 crore (₹35 crore). Recovery from stressed accounts was 12 per cent lower yoy at ₹1,309 crore (₹1,495 crore). The bank has written-off bad loans aggregating ₹4,900 crore (₹70 crore).

Recoveries target

Atanu Kumar Das, MD & CEO, said the bank is expecting recoveries of ₹2,500 crore in the current quarter. Of this, recovery from accounts in the National Company Law Tribunal (NCLT) could be about ₹700 crore. The bank is aiming to reduce its GNPA to below 10 per cent by March-end 2022.

BoI will transfer six accounts aggregating about ₹3,000 crore to the newly formed National Asset Reconstruction Company Ltd (NARCL).

M Karthikeyan, ED, said the bank has made 47 per cent provision towards its ₹1,078 crore exposure to Future Retail Ltd. Its exposure to Future Enterprises is classified as ‘Standard’.

Gross domestic advances grew by about 5 per cent yoy to ₹3,82,365 crore as at December-end 2021, mainly on the back of about 16 per cent yoy growth in retail advances, about 12 per cent growth in agriculture advances and about 9 per cent growth in MSME advances. Advances to the corporate & other segments declined about 4 per cent.

Gross overseas advances increase about 6 per cent yoy to ₹55,034 crore.

Domestic deposits nudged up about 2 per cent yoy to ₹5,45,359 crore. Overseas deposits were up about 3 per cent to ₹77,761 crore.

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