Mr Rajneesh Karnatak, CMD, Bank of India addressing the media during the Bank’s Q4FY23 Results announcement – Photo By GPN
MUMBAI, 6th MAY, 2023 (GPN): Public sector lender Bank of India’s (BoI) net profit more than doubled year-on-year (YoY) to Rs 1,350 crore for the quarter ended March 2023 (Q4FY23) on improvement in net interest income (NII). However, sequentially, the profit rose from Rs 1,151 crore in Q3FY23. For FY23, the bank’s net profit grew 18.15 per cent to Rs 4,023 crore against Rs 3,405 crore in FY22.
The board of directors declared a dividend of Rs 2.0 per share (Rs 10 each) for FY23, subject to shareholders’ approval, the bank informed BSE.
BOI’s capital adequacy ratio stood at 16.28 per cent with the Common Equity Tier of 13.6 per cent at the end of March.
The bank’s net interest income (NII), interest revenues minus interest expenses, grew by 37.77 per cent YoY to Rs 5,493 crore in Q4FY23 as against Rs 3,987 crore for Q4FY22. The net interest margin (NIM) improved to 3.15 per cent in Q4FY23 from 2.56 per cent in Q4FY22.
The bank in a statement said that the advances expanded by 12.87 per cent YoY basis to Rs 5.15 trillion in FY23. Total deposits increased by 6.64 per cent YoY to Rs 6.69 trillion. The share of low-cost deposits — current account and saving accounts (CASA) — stood at 44.73 per cent at the end of March 2023, down from 45.02 per cent a year ago, according to an analyst presentation.
The asset quality profile improved with gross non-performing assets (NPA) declining to 7.31 per cent in March 2023 from 9.98 per cent in the same month in 2022. The net NPAs also declined 1.66 per cent in March 2023 from 2.34 per cent a year ago.
The provision coverage ratio (PCR) improved to 89.68 per cent in March 2023 from 87.76 per cent a year ago.
Bank of India (BOI) Financial Results in Nutshell for the Q4’FY23 & FY 2022-23
Profitability Q4FY23:
- Net Profit jumped by 123% YOY, which went up from Rs. 606 Cr in Q4FY22 to Rs.1,350 Cr for Q4FY23.
- Operating Profit went up by 69.67% YoY from Rs.2,466 Cr in Q4FY22 to Rs.4,184 cr in Q4FY23.
- Net Interest Income (NII) increased by 37.77% from Rs. 3,987 Cr in Q4FY22 to Rs. 5,493 Cr in Q4FY23.
- Non-Interest Income increased by 95.27% from Rs.1,587 Cr in Q4FY22 to Rs.3,099 Cr for Q4FY23, sequentially improved by 116% from Rs.1,432 Cr in Q3FY22.
Profitability FY23:
- Net Profit jumped by 18.15% YOY, which went up from Rs. 3,405 Cr in FY22 to Rs. 4,023 Cr for FY23.
- Operating Profit increased by 34.09% from Rs.9,988 Cr for FY22 to Rs. 13,393 Cr in FY23.
- Net Interest Income (NII) increased by 44.17% from Rs. 14,063 Cr for FY22 to Rs. 20,275 Cr in FY23.
- Non-Interest Income stood at Rs.7,100 Cr in FY23 against Rs.7,879 Cr for FY22.
Ratios Q4FY23:
- NIM (Global) improved from 2.56% in Mar’22 to 3.15% in Mar ‘23.
- NIM (Domestic) also went up from 2.90% in Mar’22 to 3.59% in Mar’23.
- Return on Assets (RoA) improved from 0.30% in Q4FY22 to 0.63% in Q4FY23.
- Return on Equity (RoE) improved from 6.64% in Q4FY22 to 13.52% in Q4FY23.
- Cost to Income Ratio (CIR) improved from 55.76% in Q4FY22 to 51.48% in Q4FY23.
- Slippage ratio stood at 0.64% in Q4FY23 against 0.47% in Q4FY22.
- Credit Cost improved from 1.10% in Q4FY22 to 0.45% in Q4FY23.
Ratios FY23:
- NIM (Global) improved by 65 bps from 2.36% in FY22 to 3.01% in FY23. NIM (Domestic) improved by 82 bps from 2.61% in FY22 to 3.43% in FY23.
- Return on Assets (RoA) improved by 6 bps from 0.43% in FY22, to 0.49% in FY23.
- Return on Equity (RoE) stood at 10.31% in FY23 against 10.55% in FY’22.
- Cost to Income Ratio (CIR) improved from 54.48% in FY’22 to 51.08% in FY’23
- Slippage ratio came down from 2.15% in FY22 to 1.94% in FY23.
- Credit Cost stood at 0.79% in FY23 against 0.75% in FY22.
Business:
- Global Business increased by 9.27% YOY from Rs.10,84,910 Cr in Mar’22 to Rs.11,85,438 Cr in Mar’23.
- Global Deposits increased by 6.64% YOY and stood at Rs. 6,69,586 Cr.
- Global Advances increased by 12.87% YOY and stood at Rs. 5,15,852 Cr.
- Domestic Deposits increased by 2.95% YoY from Rs.5,50,833 Cr in Mar’22 to Rs.5,67,063 Cr in Mar’23.
- Domestic CASA went up by 2.72% YOY from Rs.2,45,464 Cr in Mar’22 to Rs.2,52,149 Cr in Mar’23 and CASA percentage stood at 44.73% in Mar’23
- Domestic Advances increased by 9.56% YOY from Rs.3,93,331 Cr in Mar’22 to Rs. 4,31,637 Cr in Mar’23.
- RAM advances increased by 12.29% YOY to Rs.2,37,884 Cr, constituting 55.11% of Advances in Mar’23.
- Retail Credit grew by 17.40% YOY to Rs.94,716 Cr in Mar’23.
- Agriculture Credit grew by 8.99% YOY to Rs.72,391 Cr in Mar’23.
- MSME Credit grew by 9.31% YOY to Rs.70,777 Cr in Mar’23.
- Overseas Deposits increased by 33.04% YOY to Rs. 1,02,523 Cr and Overseas Advances increased by 33.63% YOY to Rs. 84,215 Cr in Mar’23.
Asset Quality:
- Gross NPA declined by 17.36% YOY from Rs. Rs. 45,605 Cr in Mar’22 to Rs.37,686 Cr in Mar’23.
- Net NPA declined by 18.25% YOY from Rs.9,852 Cr in Mar’22 to Rs.8,054 Cr in Mar’23.
- GNPA ratio declined from 9.98% in Mar’22 to 7.31% in Mar’23.
- Net NPA ratio declined from 2.34% in Mar’22 to 1.66% in Mar’23.
- Provision Coverage Ratio (PCR) stood at 89.68% in Mar’23 against 87.76% in Mar’22.
Capital Adequacy:
- As on 31.03.2023, Bank’s Capital Adequacy Ratio (CRAR) stood at 16.28% against 15.60% in Dec’22 and 16.51% in Mar’22. (Vis-à-vis 11.5% mandate).
- CET-1 ratio stood at 13.60% in March’ 23 against 12.77% in Dec’22 and 13.49% in Mar’22. (Vis-à-vis 8% mandate).
- During the year, the Bank successfully raised AT-1 Bonds of Rs.1,500 Cr for augmenting capital base.
Priority Sector, Financial Inclusion & Digital Banking:
- Priority Sector Advances increased by 8.48% YOY and achieved 43.28% of ANBC as on Mar’23. Agricultural advances achieved the 19% of ANBC.
- Advances to Small & Marginal Farmers achieved 11.23% of ANBC in Mar’23 against regulatory norm of 9%.
- Advances to Weaker Sections achieved 14.75% of ANBC in Mar’23 against regulatory norm of 11%.
- Financial Inclusion performance:
- PMSBY : Against a full year target of 55%, achieved 60%
- PMJJBY: Against a full year target of 55%, achieved 45%
- APY per Branch: Against a full year target of 80, achieved 129.
- Digital Banking:
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- Internet Banking users: Increased to 8.46 million in Mar’23 from 8.08 million in Mar’22.
- Mobile Banking users: Increased to 8.03 million in Mar’23 from 6.11 million in Mar’22.
- UPI users: Increased to 15.57 million in Mar’23 from 12.99 million in Mar’22.
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