Bank of India’s net profit fell 22.08 percent year on year (YoY) to Rs 561 crore in the first quarter of fiscal year 2022-23 (Q1FY23) due to a decline in non-interest income and an increase in provisions for bad loans.
During the previous fiscal year, the Mumbai-based public sector lender earned a net profit of Rs 720 crore (Q1FY22).
On the BSE, the bank’s stock closed 2.65% higher at Rs 50.4 per share on Tuesday.
While the bank’s net interest income (NII) increased by 29.4% year on year to Rs 4,072, its net interest margin (NIM) improved to 2.55 percent from 2.16 percent the previous year, according to a statement.
Non-interest income fell sharply to Rs 1,152 crore in Q1FY23 from Rs 2,320 crore the previous year. Treasury revenues, which account for a sizable portion of non-interest income, have taken a hit as bond yields have risen.
The bank’s asset quality profile improved, with gross non-performing assets (GNPAs) at 9.3 percent through June 2022, down from 13.5 percent the previous quarter. Net NPAs fell to 2.21 percent in June 2022, down from 3.35 percent the previous year.
NPA provisions increased to Rs 1,304 crore in the first quarter of FY23, up from Rs 873 crore the previous year. The provision coverage ratio increased from 86.17 percent a year ago to 87.96 percent in the current quarter.
While the bank’s loan portfolio increased 15.2 percent year on year to Rs 4.77 trillion in June 2022, deposits increased 2.78 percent year on year to Rs 6.4 trillion in June 2022.
The total capital adequacy ratio (CAR) was 15.61 percent in June 2022, up from 15.07 percent the previous month.