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The total income for the reporting quarter rose to Rs 11,328 crore from Rs 9,722 crore in the year-ago period.
Reflecting the performance, BoI stock closed lower by 0.8 per cent at Rs 280 on the BSE on Wednesday.
The net interest income rose by 5.87 per cent to Rs 2, 686 crore from 2,537 crore last year. However, net interest margin (NIM) declined to 2.16 per cent in the reporting quarter from 2.50 per cent in Q1 of FY14.
V R Iyer, its chairperson and managing director, said margins were down due to muted growth and lending at base rate to “AAA” rated public sector companies in the first quarter. These accounts provide us good fee income and business for treasury in competitive market conditions.
The non-interest income fell by 13.3 per cent from Rs 1,181 crore to Rs 1,024 crore. The profit from sale of investments, an important component of non-interest income, declined sharply by 53.6 per cent to Rs 243 crore from Rs 524 crore. Profit from foreign exchange transactions also declined by 21.3 per cent to Rs 162 crore.
Its total advances rose by 23.31 per cent to Rs 3,81,566 crore. Its deposits rose by 20.7 per cent Rs 5,00,875 crore.
Its gross non-performing assets stood at 3.28 per cent, up from 3.04 per cent a year ago. . Bank sold NPAs of Rs 1,764 crore in the April-June 2014. The provision coverage ratio declined to 58.1 per cent from 60.9 per cent.
Its capital adequacy ratio (Basel III) was 9.98 per cent with tier I of 7.25 per cent.
