MUMBAI: Public sector Bank of India (BoI) on Friday reported net profit 1,027 crore in the three months through December, 90% on a year-on-year (YoY) basis, due to lower provisions.
Its total provisions were down 81% year-on-year 335 crores. Its net interest income (NII) or the difference between interest earned and spent was 3,408 crore, down 9% from the same period last year. The bank’s net interest margin (NIM), a key indicator of profitability, was down 15 basis points (bps) on a sequential basis.
“Very high credit growth is the key to a positive NII. From a credit-deposit ratio of 65%, we have reached over 70%; We have also seen a growth of 5.4% in advances as compared to growth of 1-2% in the last two quarters. We have started and the growth in Q3 and Q4 will definitely be better NII and NIM in Q4 and the entire financial year.”
The bank saw an improvement in asset quality in the form of gross non-performing assets (NPA), as the percentage of total loans declined by 279 bps year-on-year and 154 bps sequentially to 10.46% as on December 31. loan value 1,845 crore slipped into the NPA category in the December quarter, which stood at . More than 1,307 crore in the September quarter.
Bank of India registers 5.33% YoY growth in domestic advances 3.82 trillion in Q3 FY2012 and local deposits grew by 1.7% year-on-year 5.45 trillion in the same period.
Its shares closed on BSE 56.50 on Friday, down 3.34% from its previous close.
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