NEW DELHI: Bank of India (BoI) on Wednesday reported a net profit of Rs 541 crore for the quarter ended December, an over five-fold jump from a year ago, due to lower provisions. The Mumbai-headquartered public sector bank posed a net profit of Rs 106 crore a year ago.
Total provisioning, including towards bad and doubtful assets, standard assets, and depreciation on investments, fell 51 per cent to Rs 1,980 crore. Within the category, BoI stepped up provisions towards standard assets at Rs 1,066 crore from Rs 89 crore a year ago. Provisions for non-performing assets (NPAs), however, tumbled 83.5 per cent to Rs 623 crore for the period.
“The bank continues to be proactive and prudent in provisioning over and above the regulatory mandate... We are aiming for a recovery of almost Rs 2,500 crore in the fourth quarter (Rs 1,495 crore in the third quarter), excluding big NBFC accounts where resolution is in advanced stage,” said Atanu Kumar Das, MD & CEO. Gross NPAs of advances declined to 13.25 per cent as of December-end 2020 as against 13.79 per cent as of September-end 2020.
Net NPA position improved to 2.46 per cent of net advances as of December-end 2020 against 2.89 per cent as of September 2020. With proforma slippages, adjusted for the SC’s interim order on asset classification, the gross and Net NPA ratios would have been 14.59 per cent and 3.73 per cent, respectively.