Bank of India on Monday reported a more than threefold jump in first-quarter net profit to ₹844 crore, from ₹243 crore a year earlier.
“Having a feet-on-the-street model, we could deliver good numbers during the quarter,” said A.K. Das, MD and CEO. “This has given hope for the future. We look at the next two quarters with optimism.”
Mr. Das said the bank was adequately capitalised and, depending on the requirement, would raise more capital. The bank had made a total provision of ₹1,035 crore for COVID-19-related defaults.
Gross NPAs declined to ₹57,788 crore, from ₹62,068 crore in June 2019, while net NPAs also shrank to ₹13,275 crore, from ₹19,288 crore. Gross NPA ratio improved to 13.9%, from 16.5%, while the net NPA ratio came down from 5.79% to 3.58%. The Provision Coverage Ratio improved to 84.9%, from 77.2% in June 2019.
Net interest income was little changed at ₹3,485 crore in the latest quarter. Non-Interest income increased 42.9% to ₹1,707 crore. Net interest margin (NIM) (global) was 2.48% in June 2020, against 2.67% in June 2019. The decline in the NIM, a key metric for banks, was attributed to muted growth in the lender’s loan book.