Bank of India Q1 profit falls 22 pc to Rs 561 cr

Bank of India on Tuesday reported 22 per cent decline in standalone net profit at Rs 561 crore for June quarter on higher operating expenses, even as bad loans declined.The lender had posted a net profit of Rs 720 crore in the corresponding quarter ended June 2021.

Bank of India on Tuesday reported a 22 percent decline in standalone net profit at Rs 561 crore for the June quarter on higher operating expenses, even as bad loans declined.

The lender had posted a net profit of Rs 720 crore in the corresponding quarter that ended June 2021. As compared to the previous March quarter, the net profit was down 7.4 percent.

Total income during April-June 2022-23 fell to Rs 11,124.36 crore from Rs 11,641.37 crore in the year-ago period as income from other sources was down, Bank of India said in a regulatory filing.

The core interest income grew 7 percent in the quarter to Rs 9,972.64 crore, while other income declined by over 50 percent to Rs 1,152 crore.

Operating expenses were higher by 12 percent during the quarter at Rs 3,041 crore from Rs 2,715 crore.

On a consolidated basis, the net profit in the June quarter was down 11 percent at Rs 657.62 crore compared to Rs 735.37 crore.

Total income too declined to Rs 11,207.57 crore from Rs 11,709.62 crore.

Bank of India improved its asset quality substantially as gross Non-Performing Assets (NPAs) fell to 9.30 percent of gross advances by the end of June 2022. The same was at 13.51 percent a year ago.

In value terms, gross NPAs were down at Rs 44,414.67 crore as against Rs 56,041.63 crore.

Net NPAs (bad loans) too fell to 2.21 per cent (Rs 9,775.23 crore) from 3.35 per cent (Rs 12,424.13 crore).

Shares of Bank of India were trading at Rs 50.70 apiece on BSE, up 3.26 percent.