Public sector lender Bank of India’s (BOI) net profit rose by 412 per cent to Rs 541 crore in third quarter ended December 2020 (Q3FY21) on sharp dip in provisions for bad loans.
It had posted a net profit of Rs 106 crore in third quarter ended December 2019 (Q3FY20).
BOI stock was trading 2.62 per cent at Rs 60.75 per share on BSE.
Its net interest income (NII) for reporting quarter, fell by 9.19 per cent to Rs 3,740 crore in Q3FY21 from Rs 4,118 crore in Q3FY20. The net interest margin (NIM) for domestic operations also contracted sharply from 3.45 per cent in Q3FY20 to 2.81 per cent in Q3FY21.
The non-interest income also declined from Rs 2,068 crores in Q3FY20 from Rs 2,503 crore in Q3FY21, Bank said in a statement.
The provisions for non-performing assets (NPAs) came down from Rs 3,774 crore in Q3FY20 from Rs 623 crore in Q3FY21. The credit cost (global) came down from 4.5 per cent in Q3FY20 to 0.68 per cent in Q3FY21. The provision coverage ratio (PCR) from 77.15 per cent in December 2019 to 89.32 per cent in December 2020, bank added.
The gross NPAs stood at 13.25 per cent and net NPAs at 2.46 per cent in December 2020.
The bank’s deposits grew by 0.72 per cent to Rs 6,11,879 crore in December 2020 from Rs 5,22,138 crore a year ago. Global advances expanded by 9.59 per cent to Rs Rs 4,14,987 crore in December 2020 from Rs 3,78,686 crore in December 2019.
The lender’s Capital Adequacy Ratio stood at 12.51 per cent with tier-I of 9.44 per cent in December 2020. The bank raised Rs 750 crore Basel-III-compliant AT-1 bonds in January 2021.