Bank of India net profit rises 20 percent for December quarter sequentially

Public sector lender Bank of India posted a 20% increase in its net profit at Rs 1,151 crore in the quarter ended December

Hyderabad: Public sector lender Bank of India posted a 20% increase in its net profit at Rs 1,151 crore in the quarter ended December over the previous quarter. Its operating margins also increased 8% in the December quarter compared to the September ended quarter.

During the third quarter, the operating profit has jumped to Rs 3,652 crore, up by 74% on a year-on-year basis and by 8% sequentially.

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Growth in advances, particularly in the retail, agriculture and MSME (RAM), segment drove the profitability.

With better credit off take, considerable growth is witnessed in its net interest margin (NIM) to 3.28%. It improved by 101 bps YoY.

The net interest income (NII) stood at Rs 5,596 crore up by 64% YoY and 10% sequentially. Yield on Advances at 7.67%, increased by 46 bps sequentially and 65 bps YoY.

RAM Advances grew by 13.2% on YoY basis and it constitutes 54.1% of gross advances. The Current and savings accounts (CASA) deposits increased by 3.7% on YoY basis.

Bank took several steps which has brought down gross NPAs to 7.66% with a significant decline by 280 bps on YoY basis. It reduced the Gross NPA in terms of absolute number by Rs6,875 crore on YoY basis. The Net NPAs touched to 1.61%, down by 105 bps on YoY basis.

Slippage Ratio stood at 0.27%, a decline by 20 bps YoY, a release said.