KEY HIGHLIGHTS – Q2FY23 

• Net Profit for Q2FY23 improved to Rs.960 Cr. up by 71% sequentially.
• Operating Profit improved to Rs.3,374 Cr. up by 26% YoY and by 55% sequentially
• Return on Assets (RoA) stood at 0.47%, improved by 18 bps sequentially.
• NIM stood at 3.04%, improved by 49 bps sequentially.
• NII stood at Rs.5,083 Cr up by 44% YoY and 25% sequentially.
• Yield on Advances at 7.21%, increased by 63 bps sequentially.
• Gross NPA ratio at 8.51%, down by 349 bps YoY.
• Net NPA ratio at 1.92% down by 87 bps YoY.
• Provision Coverage Ratio (PCR) at 88.96%.
• CRAR stood at 15.51% with Tier-I at 13.38% & CET-1 at 12.97%.
• RAM Advances grew by 15.57% YoY and it constitutes 54.25% of Gross Advances.
• CASA deposits increased by 4.05% YoY and CASA% at 44.12%.
• Credit Cost stood at 0.60%, declined by 61 bps sequentially.
• Slippage ratio stood at 0.30%, declined by 39 bps sequentially.

MUMBAI, 3 NOVEMBER, 2022 (GPN): Bank of India announced its Q1FY 23 results today reporting a Profit After Tax (PAT) of Rs. 960 crores, improved by 71% from Rs.561 Cr in Q1FY23.

The Operating Profit stood at Rs.3,374 Cr against Rs.2,678 Cr in Q2FY22 and Its Net Interest Income improved 44 per cent YoY to Rs 5,083 crore for Q2FY23, against Rs 3,523 crore a year ago. On a sequential basis, it increased 25 per cent, from Rs 4,072 crore in Q1FY23.

The company has reported EPS of Rs. 2.08 for the period ended September 30, 2022 as compared to Rs. 1.60 for the period ended June 30, 2022.

A K Das, managing director and chief executive officer, in a media call said after inspection by the regulator, the bank increased the provisions for some state government accounts. This pushed the total provisions to Rs 1,912 crore in Q2FY23, from Rs 894 crore a year ago.

The bank’s stock closed 4.83 per cent higher at Rs 64 per share on BSE on Thursday Bank of India’s net profit declined 8.65 per cent year-on-year (YoY) to Rs 960 crore in the July-September quarter (second quarter, or Q2) of 2022-23 (FY23) on increase in provisioning, especially for state government accounts that are standard assets.

Its net interest margin improved 62 basis points (bps) to 3.04 per cent in Q2FY23, against 2.42 per cent a year ago. It improved 49 bps on a sequential basis, from 2.55 per cent in Q1FY23.

Its non-interest income for the reporting quarter declined sharply to Rs 1,417 crore for Q2FY23, from Rs 2,136 crore a year ago. On a sequential basis, it increased 23 per cent, from Rs 1,152 crore in Q1FY23.

Its advances increased 17.89 per cent YoY, from Rs 4.18 trillion in Q2FY22 to Rs 4.93 trillion in Q2FY23. The bank expects credit to grow 11-12 per cent for FY23.

Global deposits expanded 5.64.per cent YoY, from Rs 6.12 trillion in Q2FY22 to Rs 6.47 trillion in Q2FY23.

On the wide gap between credit and deposit growth, Das said the bank will step up efforts to mobilise resources to about Rs 10,000 crore by December. The bank has guided for 7.5-8 per cent growth in deposits.

Its asset quality profile improved, with gross non-performing assets (NPAs) declining to 8.51 per cent in Q2FY23, from 12 per cent a year ago and 9.3 per cent in Q1FY23.

The net NPA ratio declined to 1.92 per cent at the end of Q2FY23, from 2.79 per cent a year ago and 2.21 per cent in Q1FY23.

The provision coverage ratio for bad loans stood at 88.96 per cent in Q2FY23, against 87.81 per cent a year ago and 87.96 per cent in Q1FY23.

As on September 30, the bank’s total capital adequacy ratio was at 15.51 per cent in Q2FY23, against 17.05 per cent a year ago and 15.61 per cent in Q1FY23.

Results In Nutshell:

Profitability:
Q2-FY23:

• Net Profit for the quarter stood at Rs.960 Cr for Q2FY23. On a sequential basis, Net Profit improved by 71% from Rs.561 Cr in Q1FY23.
• Operating Profit improved by 26% YoY and stood at Rs.3,374 Cr for Q2FY23 against Rs.2,678 Cr in Q2FY22. On a sequential basis, Operating Profit improved by 55% from Rs.2,183 Cr in Q1FY23.
• Net Interest Income (NII) improved by 44% YoY and stood at Rs.5,083 Cr for Q2FY23 against Rs.3,523 Cr for Q2FY22. On a sequential basis, it increased
  by 25% from Rs.4,072 Cr in Q1FY23.
• Non-Interest Income stood at to Rs.1,417 Cr for Q2FY23 against Rs.2,136 Cr in Q2FY22. On a sequential basis, it increased by 23% from Rs.1,152 Cr in
  Q1FY23.

H1-FY23:

• Net Profit for H1FY23 stood at Rs.1,521 Cr against Rs.1,771 Cr in H1FY22.
• Operating Profit improved by 2.39% YoY and stood at Rs.5,557 Cr for H1FY23 against Rs.5,427 Cr for H1FY22.
• Net Interest Income (NII) increased by 37% YoY and stood at Rs.9,156 Cr for H1FY23 against Rs.6,668 Cr for H1FY22.
• Non-Interest Income stood at Rs.2,569 Cr for H1FY23 against Rs.4,456 Cr for H1FY22.

Ratios (Q2-FY23):

• NIM (Global) improved by 62 bps to 3.04% in Q2FY23 against 2.42% in Q2FY22. It improved by 49 bps on a sequential basis from 2.55% in Q1FY23.
• NIM (Domestic) improved by 84 bps YoY to 3.49% in Q2FY23 against 2.65% in Q2FY22. It improved by 61 bps on a sequential basis from 2.88% in Q1FY23.
• Return on Assets (RoA) improved by 18 bps to 0.47% in Q2FY23, on a
  sequential basis from 0.29% in Q1FY23.
• Cost to Income ratio (Global) improved significantly on sequential basis to 48.10% in Q2FY23 against 58.22% in Q1FY23.
• Yield on Advances (Global) improved to 7.21% in Q2FY23 against 6.58% in Q1FY23.
• Cost of Deposits (Global) stood at 3.54% in Q2FY23 against 3.49% in Q1FY23.

Business:

• Global Business increased by 10.61% YoY from Rs.10,31,856 Cr in Sep’21 to Rs.11,41,356 Cr in Sep’22.
• Global Deposits increased by 5.64% YoY from Rs. 6,12,961 Cr in Sep’21 to Rs. 6,47,541 Cr in Sep’22.
• Global Advances increased by 17.89% YoY from Rs. 4,18,895 Cr in Sep’21 to Rs. 4,93,814 Cr in Sep’22.
• Domestic deposits increased by 1.04% YoY from Rs. 5,45,734 Cr in Sep’21 to Rs.5,51,401 Cr in Sep’22.
• Domestic CASA went up by 4.05% YoY from Rs.2,32,797 Cr in Sep’21 to Rs.2,42,230 Cr in Sep’22 and CASA ratio stood at 44.12%.
• Domestic Advances increased by 11.85% YoY from Rs. 3,68,573 Cr in Sep’21 to Rs. 4,12,233 Cr in Sep’22.
• RAM Advances increased by 15.57% YoY to Rs.2,23,648 Cr, constituting to 54.25% of Advances.
• Retail Credit grew by 23.37% YoY to Rs.87,451 Cr in Sep’22.
• Agriculture Credit grew by 12.87% YoY to Rs.69,667 Cr in Sep’22.
• MSME Credit grew by 9.22% YoY to Rs.66,530 Cr in Sep’22.

Asset Quality:

• Gross NPA declined by 5.40% QoQ from Rs.44,415 Cr in Jun’22 to Rs.42,014 Cr in Sep’22.
• Net NPA declined by 9.61% QoQ from Rs.9,775 Cr in Jun’22 to Rs.8,836 Cr in Sep’22.
• GNPA ratio improved by 79 bps from 9.30% in Jun’22 to 8.51% in Sep’22.
• Net NPA ratio improved by 29 bps from 2.21% in Jun’22 to 1.92% in Sep’22.
• Provision Coverage Ratio (PCR) stood at 88.96% in Sep’22 against 87.96% in Jun’22.

Capital Adequacy:

• As on 30.09.2022, Bank’s total Capital Adequacy Ratio (CRAR) was at 15.51%against 15.61% in Jun’22.
• CET-1 ratio stood at 12.97% as on Sep’22.

Priority Sector, Financial Inclusion & Digital Banking:

• Priority Sector Advances increased by 10.58% YoY and achieved 43.71% of ANBC as on Sep’22.
• Agriculture Advances increased by 12.87% YoY and achieved 19.37% of ANBC as on Sep’22.
• Financial Inclusion performance:

1. PMSBY : Against a full year target of 40%, achieved 53%.
2. PMJJBY: Against a full year target of 40%, achieved 25%.
3. APY per Branch: Against a half year target of 40, achieved 84.

Digital Banking:

• Internet Banking users: Increased to 8.3 million in Sep’22 from 7.8
  million in Sep’21.
• Mobile Banking users: Increased to 7.1 million in Sep’22 from 5.1
  million in Sep’21.
• UPI users: Increased to 14.1 million in Sep’22 from 11.4 million in Sep’21.