Bank of India Q3 Result: Profit rises 12% to Rs 1151 crore, bad loans decline considerably

Bank of India Q3 Result: State-owned Bank of India (BoI) on Tuesday reported 12 per cent rise in its profit at Rs 1,151 crore for the third quarter that ended in December 2022. There has been a considerable decline in bad loans as the net non-performing assets (net NPAs) ratio stood at 1.61% - down by 105 bps YoY.

The Mumbai-based bank had posted a net profit of Rs 1,027 crore in the same quarter a year ago.

Total income increased to Rs 14,159.60 crore in the latest December quarter from Rs 11,211.14 crore in the year-ago period, BoI said in a regulatory filing.

Net-Interest Income improved by 64 per cent to Rs 5,596 crore against Rs 3,408 crore in Q3FY22, it said.

The operating profit of the bank improved by 74 per cent to Rs 3,652 crore, as against Rs 2,096 crore in the same quarter a year ago.

On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 7.66 per cent as compared to 10.46 per cent at the end of third quarter of previous fiscal year.

At the same time, net NPAs eased to 1.61 per cent as against 2.66 per cent in the same period a year ago.  GNPA ratio improved by 85 bps from 8.51 per cent in Sep’22 to 7.66% in Dec’22. The capital adequacy ratio stood at 15.60 per cent in the December quarter.

M. Karthikeyan, Executive Director said during the press meet that the bank expects recovery from a paper company (via the National Asset Reconstruction Company Ltd route) and a non-banking finance company (via the IBC process) in the current quarter.

(With Inputs from PTI)