Bank of India: Rs 541 crore net growth?

In the December quarter (Q3FY21), the Bank of India reported a five-fold rise in overall income to $ 541 million compared to the same quarter last year (Q3FY21). Provisions decreased by 51% per annum (YoY) and 14% per quarter (QoQ) to Rs 1,980 crore. Its operating profit decreased by 31% YoY and 8% QoQ to Rs 2,836 crore. Interest income (NII) decreased by 9% in yyoo and subsequent succession to Rs 3,739 crore.

Explaining the reason for the low subsidy, BoI MD and CEO Atanu Kumar Das said the provision was higher in the December quarter (Q3FY20) as the lender provided to Dewan Housing Finance Corporation (DHFL) at the time. Once again this year, they have made a number of dedicated and optional offers from Q1FY21 itself, he added. The supply chain index (PCR), which was 77.15% in Q3FY20 and affected 87.91% in Q2FY21, has risen to 89.32% in Q3FY21.

They feel that as the economy recovers in March in a very important way, they will be able to see the growth of our debt at a rate of about 10-12%. The lender was able to register positive growth during the quarter under review. Progress grew by 9.6% YoY and 1.8% QoQ to Rs 4.14 lakh crore. Deposits increased by 17% YoY to Rs 6.1 lakh crore, but remained flat respectively. The current rate savings account (CASA) remained at 40.61%, compared to 39.49% in the September quarter. Debt costs remain at 0.68%, compared to 2.33% in Q2FY21.

Lender interest rates (NIMs) are awarded contracts with 8 basic points (bps) respectively and 49 bps YoY up to 2.58%. By the end of March, the bank will have targeted NIM to be 2.75% after volume-led growth.

The quality of the lender’s assets showed improvement in the December quarter. Total non-performing assets (NPAs) improved 54 bps to 13.25%, compared to 13.79% in the previous quarter. Similarly, the rate for NPAs has dropped by 86 bps to 3.27% from 4.13% in the September quarter. The lender has not separated any NPAs as of August 31, 2020, due to an interim order of the Supreme Court. “On the basis of pro forma, the major NPAs stood at 14.59% and the NPAs at a total of 3.73%,” Das said. Regarding the quality of goods in future residences, he said major NPAs could rise to 14.25%.

The inflation rate stands at 12.51% at the end of the December quarter, compared with 12.8% in the previous quarter.


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