by Suman Gupta
Public sector lender Bank of India on August 3 reported a 10 percent rise in its net profit to Rs 1,702.7 crore in the first quarter of the current financial year, compared to Rs 1,551 crore in the same quarter last year.
In the first quarter of the current fiscal, the lender’s Net Interest Income (NII), a critical indicator of the bank’s core income, rose 6.1 percent to Rs 6,275.8 crore, as compared to Rs 5,914 crore in the year-ago period. The non-interest income of the bank in the reporting quarter was down 11 percent to Rs 1,302 crore, as compared to Rs 1,462 crore in the year ago period. The state-owned bank’s total income was at Rs 18,240 crore. In the year-ago period, it stood at Rs 15,821 crore, according to a regulatory filing.
In terms of asset quality, Bank of India reported a decline in its Gross Non-Performing Assets (NPA) ratio, which stood at 4.62% for Q1, down from 4.98% in the previous quarter. The Net NPA ratio also showed improvement, dropping to 0.99% from 1.22% quarter-on-quarter.
Operating profit (Profit before Provisions and Contingencies) is down 2% at Rs 3,677 crore against Rs 3,751 crore in the year ago quarter.
Its provisions and contingencies were 38% lower at Rs 1,293 crore against Rs 824 crore in the year ago period. Out of this, provisions for non-performing assets were Rs 1,215 crore against Rs 776 crore in the year ago period.
Provision Coverage Ratio (PCR) improved by 62 basis points (bps) on-year, as per release. PCR of the state-owned bank stood at 92.11 percent as on June 30, 2024, against 90.59 percewnt as on March 31, 2024.On a consolidated basis, the bank’s net profit was at Rs 1,734 crore in the 2024 June quarter. It was up by 15.5 percent from Rs 1,501 crore in the year-ago period.
