MUMBAI, India’s leading state-owned bank, Bank of India, for the quarter ended December 31, 2022 (third quarter of financial year 2022-23) reported Rs. 1151 crore in net profit, up 20 percent quarter-on-quarter, driven by a sustained increase in operating margin of 8 percent quarter-on-quarter. Bank of India, a leading Public Sector Bank posted a rise by 20% sequentially in Net Profit at Rs. 1151 crore
The bank has shown significant improvement in various key metrics during the third quarter. Operating profit grew by 74 percent YoY and 8 percent QoQ to Rs. 3,652 crores. Return on Assets (ROA) was 55 bps. The NIM percentage stood at 3.28 percent, driven by the domestic NIM of 3.72 percent. Growth in advances mainly contributed to the growth in profitability, particularly growth in the RAM and corporate segments.
A significant increase in the NIM percentage, which stood at 3.28 percent, was an increase of 101 bps year-on-year, along with higher credit withdrawals. NII grew 64 percent YoY and 10 percent QoQ to Rs. 5,596 crores. Income on advances was 7.67 percent, up 46 bps quarter-on-quarter and 65 bps year-on-year.
RAM advances grew by 13.24 percent year-on-year and accounted for 54.14 percent of total advances. CASA deposits grew by 3.70 percent year-on-year on a domestic basis and the share of domestic CASA was 44.56 percent of the total deposits.
The bank took several steps on the recovery front, which brought down the percentage of gross NPAs to 7.66 percent, which accounted for an important reduction of up to 280 bps year-on-year and also in gross NPAs to Rs. 6,875 crore was reduced.
The percentage of net NPAs also declined and fell by 105 bps year-on-year to 1.61 percent. The slippage ratio declined by 20 bps to 0.27 percent year-on-year. Both gross NPAs and net NPAs declined year-on-year and quarter-on-quarter in absolute and percentage terms.
Income to cost ratio (global) was 48.03 per cent (up to 31.12.2022) quarter-on-quarter, 48.10 per cent (up to 30.09.2022) and 60.03 per cent (up to 31.12.2021).