Bank of India Q1FY23 Results: Profit falls 22% to Rs 561 cr on higher operating expenses

Bank of India on Tuesday reported 22 per cent decline in standalone net profit at Rs 561 crore for June quarter on higher operating expenses, even as bad loans declined.

The lender had posted a net profit of Rs 720 crore in the corresponding quarter ended June 2021. As compared to the pervious March quarter, the net profit was down 7.4 per cent.

Total income during April-June 2022-23 fell to Rs 11,124.36 crore from Rs 11,641.37 crore in the year-ago period as income from other sources was down, Bank of India said in a regulatory filing.

The core interest income grew 7 per cent in the quarter at Rs 9,972.64 crore, while other income declined by over 50 per cent to Rs 1,152 crore.

Operating expenses were higher by 12 per cent during the quarter at Rs 3,041 crore from Rs 2,715 crore.

On consolidated basis, the net profit in June quarter was down 11 per cent at Rs 657.62 crore compared to Rs 735.37 crore.

Total income too declined to Rs 11,207.57 crore from Rs 11,709.62 crore.

Bank of India improved on its asset quality substantially as gross Non-Performing Assets (NPAs) fell to 9.30 per cent of gross advances by the end of June 2022. The same was at 13.51 per cent a year ago.

In value terms, gross NPAs were down at Rs 44,414.67 crore as against Rs 56,041.63 crore.

Net NPAs (bad loans) too fell to 2.21 per cent (Rs 9,775.23 crore) from 3.35 per cent (Rs 12,424.13 crore).

Shares of Bank of India were trading at Rs 50.70 apiece on BSE, up 3.26 per cent.