Bank of India Q1 net dip 22 pc to Rs 561 cr on higher bad loan provisioning

Bank of India on Tuesday reported a 22 per cent decline in standalone profit after tax to Rs 561 crore in the April-June quarter on higher provisioning for bad loans.

The lender had reported a profit after tax of Rs 720 crore in the same quarter of the previous fiscal.

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.

“There was a fall in operating profit on a y-o-y basis due to decrease in non-interest income mainly on account of lower treasury income. ''We also made Rs 500 crore of more provisioning this (Q1) quarter on a y-o-y basis because of the one or two big accounts. A little deterioration in our slippage ratio was witnessed,” the bank's Managing Director and CEO A K Das told reporters here.

Operating profit declined to Rs 2,183 crore from Rs 2,749 crore.

Non-interest income fell to Rs 1,152 crore from Rs 2,320 crore. Net interest income (NII) rose by 29.51 per cent to Rs 4,072 crore from Rs 3,146 crore.

Domestic net interest margin (NIM) stood at 2.88 per cent and global NIM at 2.55 per cent.

The gross non-performing asset (GNPA) stood at 9.30 per cent in the June quarter from 13.51 per cent in the year-ago quarter. Net NPA stood at 2.21 per cent as against 3.35 per cent.

Fresh slippages were at Rs 2,465 crore. Cash recovery stood at Rs 1,219 crore and upgrades were at Rs 465 crore.

Provisions for bad loans increased to Rs 1,304 crore as against Rs 873 crore.

Provision coverage ratio (PCR) stood at 87.96 per cent as against 86.17 per cent in June 2021.

As of June 30, 2022, total capital adequacy ratio (CRAR) stood at 15.61 per cent. CET-1 ratio stood at 12.86 per cent as on June 2022.

The bank's scrip closed at Rs 50.40 apiece, up 2.65 per cent on BSE.