Trading On margin

BOI Q4 net profit rises 142.3% to Rs 606 cr on margin improvement

Net profit at public sector lender Bank of India (BOI) rose 142.3% to Rs 606 crore in Q4FY22, driven by improved net interest margins.

It had posted a net profit of Rs 250 crore in Q4FY21, the bank said in a statement.

For FY22, net profit increased by 57.6% to Rs 3,405 Crore from FY21 Crore 2,160.

The board has recommended a dividend of Rs 2 per share (with a face value of Rs 10) for 2021-22 subject to shareholder approval. The bank’s share traded up 2.48% to Rs 47.6% on BSE.

The Mumbai-based lender’s net interest income (NII) increased by 35.77% to Rs 3,986 crore in Q4FY22 from Rs 2,936 crore in Q4FY21. Net interest margin (NIM) improved to 2.58% for Q4FY22 from 2.01% for Q4FY21.

Non-interest income fell from Rs 1,829 crore in Q4FY21 to Rs 1,587 crore in Q4FY22.

Advances increased by 11.35% year-on-year to reach Rs 4.57 trillion in March 2022. Retail, Agriculture and MSME (RAM) loan portfolio increased by 15.7% year-on-year annual to reach 2.16 trillion rupees in March 2022, the BOI added.

Deposits increased by 0.12% to reach Rs 6.27 trillion in March 2022. The share of low cost deposits – Current Account and Savings Account (CASA) – in domestic deposits stood at 45, 02% as of March 31, 2022, compared to 41.27 percent. cent in March 2021.

The asset quality profile has improved, with gross non-performing assets (NPA) falling to 9.98% as of March 31, 2022, from 13.77% in March 2022. Its net NPA stood at 2.34% at the end of March 2022, against 3.35% one year ago.

The provision coverage ratio (PCR) for bad debts improved to 87.76% in March 2022 from 86.24% a year ago.

The Bank’s capital adequacy ratio, under Basel III, was 17.04% as at March 31, 2022, up from 14.93% a year ago.

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