Bank of India Q1 net down 14.7% to Rs 720 Cr on higher bad-loan provisions

Net interest income declines to Rs 3,145 crore from Rs 3,481 crore a year ago; net interest margin fell to 2.16 per cent in Q1FY22 from 2.48 per cent.

On higher provisions for bad loans and standard assets, Bank of India’s (BoI) net profit for the June 2021 quarter decreased by 14.7 percent year on year to Rs 720 crore.

Last year, it had a net profit of Rs 844 crore (Q1FY21). On the BSE, the BoI stock was trading 0.88 percent higher at Rs 74.8 per share.

In a statement, the bank said its net interest income (NII) declined to Rs 3,145 crore in Q1FY22 from Rs 3,481 crore in the previous quarter (Q1FY21). In the first quarter, the net interest margin fell to 2.16 percent, down from 2.48 percent the last quarter.

Non-interest income increased 39.25% YoY to Rs 2,376 crore in Q1FY21, up from Rs 1,707 crore in Q1FY20.

In June, the asset quality profile improved, with gross non-performing assets falling to 13.51 percent from 13.91 percent the previous year. Net NPA declined to 3.35 percent in June 2020, down from 3.58 percent in June 2020. Its provision coverage ratio increased from 84.87 percent a year ago to 86.17 percent in June 2021.