Bank of India profit zooms 100% to Rs 1,051 crore on low provisions

Its net interest income, the interest earnings minus expense, fell 14.32 per cent in the reporting quarter to Rs 3,523 crore in Q2FY22

Bank of India’s net profit zoomed 99.89 per cent year-on-year (YoY) to Rs 1,051 crore for the second quarter of Q2FY22 on improvement in non-interest income and fall in the provisions for bad loans.

The public sector bank had posted a net profit of Rs 526 crore in the year-ago quarter. Sequentially, net profit was 45.97 per cent from Rs 720 crore a year ago.

However, its net interest income (NII), the interest earnings minus expense, fell 14.32 per cent in the reporting quarter to Rs 3,523 crore in Q2FY22.

In a post results media call, Managing Director and Chief Executive A K Das said the growth in advance was muted impacting the interest income. Its advances rose just 2.7 per cent YoY to Rs 418,895 crore by September 2021, less than over 6 per cent growth of the Indian banking system. The bank has guided for 6-7 per cent rise in advances in FY22 on the back of pick-up in demand and credit outreach programme. Its deposits rose by 0.89 per cent YoY to Rs 6,12,961 crore in September 2021. Its stock closed 3.48 per cent up at Rs 62.5 per share on BSE.

The non-interest income covering fees, commission, profit from sale of investments and recoveries from written-off accounts went up by 58.71 per cent YoY to Rs 2,136 crore. It declined sequentially from Rs 2,320 crore a Q1FY21.

Its provisions for NPAs declined to Rs 241 crore in Q2 from Rs 2,134 crore in the year-ago period and Rs 873 crore in Q1FY22. The provision coverage ratio was stable at 87.81 per cent in September against 87.91 per cent a year ago and 86.17 per cent in June 2021.