Bank of India Q4 Results

Bank of India, a premier Public Sector Bank reports a two-fold jump in Net Profit by 142.31% YOY, which went up from Rs. 250 Cr in Q4FY21 to Rs.606 Cr for Q4FY22. The bank's standalone net profit increased to Rs 3,404.70 crore from Rs 2,160.30 crore in 2020-21.

The total standalone income during the January-March quarter of 2021-22 rose to Rs 11,443.46 crore against Rs 11,155. 53 crore a year ago.

The asset quality has improved as the Gross NPA has declined to 9.98 per cent of the gross advances as of March 2022 compared to 13.77 per cent in the year-ago period reflecting asset quality improvements. The Net NPAs has come down to 2.34 per cent from 3.35 per cent a year ago.

RAM (Retail, Agriculture and MSME) Advances grew by 15.70% YOY and the same constitute 54.97% of Advances.

Global Business increased by 4.56% YOY from Rs. 10,37,549 Cr in Mar’21 to Rs.10,84,910 Cr in Mar’22.  As on 31.03.2022, Bank's Capital Adequacy Ratio (CRAR) stood at 17.04% against 16.66 % in Dec’21 and 14.93% in Mar’21. (Vis-à-vis 11.5% mandate).

During the year, the Bank successfully raised QIP of Rs.2,550 crore and Tier-II Bonds of Rs.1,800 crore for augmenting capital base.

Profitability Q4FY22:
     Net Profit jumped by 142.31% YOY, which went up from Rs. 250 Cr in Q4FY21 to Rs.606 Cr for Q4FY22. 

     Operating Profit went up by 31.85% YoY from Rs.1,870 cr in Q4FY21 to Rs.2,466 cr in Q4FY22.

     Net Interest Income (NII) increased by 35.77% from Rs. 2,936 Cr in Q4FY21 to Rs. 3,986 Cr in Q4FY22. NII rose by 16.96% sequentially.

     Non-Interest Income stood at Rs.1,587 Cr for Q4FY22 against Rs. 1,829 Cr in Q4FY21.

Profitability FY22:
     Net Profit jumped by 57.60% YOY, which went up from Rs. 2,160 Cr in FY21 to Rs.3,405 Cr for FY22. 

     Operating Profit stood at Rs.9,988 Cr for FY22 against Rs. 10,272 Cr in FY21.

     Net Interest Income (NII) stood at Rs. 14,062 Cr for FY22 against Rs. 14,269 Cr in FY21.

     Non-Interest Income increased from 6,842 Cr in FY21 to Rs.7,879 Cr for FY22, with an increase of 15.15%.
Ratios Q4FY22:
     NIM (Global) for Q4FY22 improved from 2.01% in Mar’21 to 2.58% in Mar ‘22. 

     NIM (Domestic) also went up from 2.16% in Mar’21 to 2.90% in Mar’22.

     Return on Assets (RoA) improved from 0.13% in Q4FY21 to 0.30% in Q4FY22.

     Return on Equity (RoE) improved from 3.97% in Q4FY21 to 6.44% in Q4FY22.

     Slippage ratio came down from 2.05% in Q4FY21 to 0.44% in Q4FY22.

     Credit Cost improved from 3.36% in Q4FY21 to 1.10% in Q4FY22.
 
Ratios FY22:
     NIM (Global) stood at 2.36% and NIM (Domestic) at 2.61% in FY22. 

     Return on Assets (RoA) stood at 0.43% in FY22, up from 0.28% in FY21.

     Return on Equity (RoE) stood at 10.55% in FY22, up from 8.81% in FY21.

     Slippage ratio dropped from 2.41% in FY21 to 2.15% in FY22.

     Credit Cost improved from 1.80% in FY21 to 0.75% in FY22.

Business:
     Global Business increased by 4.56% YOY from Rs. 10,37,549 Cr in Mar’21 to Rs.10,84,910 Cr in Mar’22. 

     Global Deposits increased by 0.12% YOY and stood at Rs. 6,27,896 Cr. 

     Global Advances increased by 11.35% YOY and stood at Rs. 4,57,014 Cr. 

     Domestic CASA went up by 9.26% YOY from Rs. 2,24,669 Cr to Rs.2,45,464 Cr in Mar’22 and CASA percentage improved from 41.27% in Mar’21 to 45.02% in Mar’22.

     Domestic Advances increased by 8.73% YOY to Rs. 3,93,991 Cr and Overseas Advances increased by 31.09% YOY to Rs. 63,023 Cr in Mar’22. 

     RAM advances increased by 15.70% YOY to Rs.2,16,567 Cr, constituting 54.97% of Advances. 

     Retail Credit grew by 18.54% YOY to Rs.80,674 Cr in March’ 22. 

     Agriculture Credit grew by 19.27% YOY to Rs.66,431 Cr in March’ 22. 

     MSME Credit grew by 9.52% YOY to Rs.69,462 Cr in March’ 22. 

Asset Quality:
     Gross NPA declined by 19.33% YOY from Rs. 56,535 Cr in Mar’21 to Rs. 45,605 Cr in Mar’22.

     Net NPA declined by 19.66% YOY from Rs.12,262 Cr in Mar’21 to Rs.9,852 Cr in Mar’22.

     GNPA ratio declined from 13.77% in Mar’21 to 9.98% in Mar’22.

     Net NPA ratio declined from 3.35% in Mar’21 to 2.34% in Mar’22.

     Provision Coverage Ratio (PCR) stood at 87.76% in March’ 22 against 86.24% in Mar’21.

Capital Adequacy:
     As on 31.03.2022, Bank's Capital Adequacy Ratio (CRAR) stood at 17.04% against 16.66 % in Dec’21 and 14.93% in Mar’21. (Vis-à-vis 11.5% mandate).

     CET-1 ratio stood at 14.02% in March’ 22 against 13.16% in Dec’21 and 11.51% in Mar’21. (Vis-à-vis 8% mandate).

     During the year, the Bank successfully raised QIP of Rs.2,550 crore and Tier-II Bonds of Rs.1,800 crore for augmenting capital base.

Priority Sector, Financial Inclusion & Digital Banking:
     Priority Sector Advances increased by 9.57% YOY and achieved 41.55% of ANBC as on Mar’22. Agricultural advances achieved the 18% of ANBC.

     Advances to Small & Marginal Farmers achieved 10.37% of ANBC in Mar’22 against regulatory norm of 9%.

     Advances to Weaker Sections achieved 13.55% of ANBC in Mar’22 against regulatory norm of 11%.

     Financial Inclusion performance:

     PMSBY : Against a full year target of 30%, achieved 36.12% 
     PMJJBY: Against a full year target of 15%, achieved 16.54%
     APY per Branch: Against a full year target of 70, achieved 92.

Digital Banking:

     Internet Banking users: Increased to 8.09 million in Mar’22 from 7.60 million in Mar’21. 
     Mobile Banking users: Increased to 6.11 million in Mar’22 from 4.34 million in Mar’21.
     UPI users: Increased to 12.99 million in Mar’22 from 9.98 million in Mar’21. 

Guidance for FY’23:

     Credit Growth is projected to be around 10 – 12% in FY’23.
     Gross NPA is expected to be lower than 8%.
     NIM is projected to be around 3%.
     Credit Cost is expected to be at 1%.

     RAM Advances grew by 15.70% YOY, accounting for 54.97% of Advances.
     Priority Sector advances at 41.55% of ANBC.
     CASA ratio increased to 45.02% in Mar’22 from 41.27% in Mar’21.