BoI’s Q3 net grows 12% to Rs 1,151 crore

MUMBAI: Bank of India (BoI) reported a net profit of Rs 1,151 crore for the quarter ended December 2022, an increase of 12% over the Rs 1,027 crore seen in the corresponding quarter of the previous year.
BoI reported an improvement in asset quality with gross non-performing assets shrinking to Rs 38,885 crore (7.6%) from Rs 45,760 crore (10.5%) in the year-ago quarter. Its domestic deposits rose 2% year on year to Rs 5,56,707 crore while advances rose 11.6% year on year to Rs 4,26,622 crore.
The bank’s shares, however, closed 4.6% lower as the net profit was lower than expected by the market due to higher provisions.
BoI’s provisions for bad loans rose to Rs 1,087 crore during the quarter, up from Rs 693 crore in the corresponding period of previous year. The bank also made additional provision of Rs 806 crore towards standard assets as against a write-back of Rs 531 crore in the corresponding quarter last year.
Announcing the results, the bank’s MD & CEO A K Das said that BoI had the headroom to spread the provisions for some of the bad loans across four quarters but choose to make all the provisions up front.