Bank of India has released its results for the December quarter of the financial year 2020-21. The bank’s net profit has increased 5-fold in Q3 and Bank of India’s net profit has risen to Rs 541 crore. However, such a sharp increase in net profit is due to a drastic decrease in provisions and contingencies. In the December quarter, the provision for incidental expenditure has come down from Rs 4015 crore to Rs 1980 crore.
The bank’s deposits grew 18.24 percent year-on-year to Rs 5,36,171 crore in the December quarter. During this period, loan growth grew by 9.10 percent to Rs. 3,63,009 crore.
Provisions for NPAs have come down by 83.5% with only Rs 623 crore. This is why the bank has reported 5 times profit in the December quarter as compared to the same quarter last year. Bank of India’s net interest income declined 9.2% year-on-year in the December quarter and fell to Rs 3740 crore from Rs 4118 crore in the year-ago period. At the same time, the net interest margin of the bank has also come down to 2.81% from 3.45% in Q3 of the previous financial year. The bank’s income from other sources declined by 17.4% to Rs 2068 crore.
Slight drop in NPA
The bank’s NPA has declined marginally on an asset quality front. The bank’s gross NPA stood at Rs 54,997 crore as on December 31, 2020, against Rs 56.232 crore in the September quarter and Rs 61,731 crore in the December quarter last year. The ratio of Gross NPA to Gross Advances stood at 13.25% as compared to 13.79% in the September quarter and 16.30% in Q3 of the previous financial year.