BoI’s Q3 net increased by 12% to Rs.1,151 billion on higher net interest income.

On the strength of strong rise in net interest income, Bank of India (BoI) announced a 12% increase in third quarter net profit at 1,151 crore. The net profit was achieved despite a significant rise in provisions, including those for standard assets, poor and questionable assets, and other assets, as well as a reduction in non-interest revenue. Net interest income increased 64% year over year (yoy) to $5,596 crore from $3,408 crore in the same quarter last year. Commission, exchange, and brokerage fees; profits from the sale and revaluation of investments; profits from exchange transactions; recovery in w/o accounts; and other non-interest revenue all saw a 22% year-over-year fall to $1,432 billion ($1,835 billion).

In contrast to a write-back of 531 crore, the provisions for “bad & doubtful assets” and “standard assets & others” increased to 1,087 crore and 806 crore, respectively. Increased to 3.72 percent (2.51 percent) for the domestic market and 1.25 percent (0.96 percent) for the international market.The gross NPA level decreased from 8.51 percent in the previous quarter to 7.66 percent of gross advances.

Additionally, net NPAs decreased from 1.92 percent of net advances to 1.61 percent. Global advances as of December 31, 2022, were up 16.08 percent year over year to 5,07,750 crore. Within this, home advances increased by 11.57% while abroad advances increased by 47%. Domestic advances growth was driven by rising retail advances (21 percent year-over-year growth), business and other advances (19% growth), agriculture (9% growth), and MSME advances (8 per cent).

“We predict 11­12% credit growth in the current year,” stated AK Das, MD & CEO. Management of asset quality is equally as important as the expansion of the credit portfolio’s size and yield. We anticipate that the GNPA ratio will be kept under 7%. Our goal is to maintain NIM at 3.25 to 3.50 percent.

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