NEW DELHI: State-run Bank of India (BoI) on Monday disclosed its financial results for the quarter-ended June 30, showing a sharp over three-fold increase in its net profit year-on-year (y-o-y).
According to documents filed with the stock exchanges, the bank’s net profit for the quarter grew to Rs 844 crore compared to Rs 242.60 crore in the April-June period of 2019-20.
This was primarily driven by an improvement in the lender’s asset quality, with non-performing asset (NPA) levels easing significantly, leading to lower provisions.
The bank’s gross NPA level declined to 13.91 per cent of its gross advances as on June 30, 2020 as against 16.50 per cent recorded in the corresponding period of the previous year.
Similarly, net NPAs also declined to 3.58 per cent, from 5.79 per cent last year, the bank said.
With the improvement in asset quality, the bank’s provisioning requirements for the quarter declined to Rs 766.62 crore from Rs 1,873.28 crore.
The bank’s total income during the period under review increased to Rs 11,941.52 crore, from Rs 11,526.95 crore in the year-ago period.
“The first quarter had a lot of positives for the bank. On the business front, we were positive, though mostly on account of deposit accretion,” the bank’s managing director and CEO A K Das told reporters adding that its “ key ratios -- return on assets, credit costs and cost efficiency exhibited significant improvement”.
BoI’s net interest income (NII) remained flat at Rs 3,481 crore against Rs 3,485 crore in the corresponding quarter a year ago.
Net interest margin (NIM) (global) stood at 2.48 per cent compared to 2.67 per cent. NIM (domestic) stood at 2.73 per cent as against 3.03 per cent in the corresponding quarter of the previous year.
“NII was flat on account of muted loan growth and a lower interest regime that we had passed on to the customers. Accordingly, our NIM also declined,” Das said.