Bank of India Net profit jumps four-fold YoY

BUSINESS HIGHLIGHTS:

• Global Business increased from Rs.9,00,824 crore in Dec. 2019 to Rs. 10,26,866 crore in Dec. 2020 with YoY growth of 13.99%.
• Global Deposits went up from Rs.5,22,138 crore in Dec.20219 to Rs. 6,11,879 crore in Dec.2020, i.e. by 17.19% YoY. Global Advances increased from Rs.3,78,686 crore to Rs. 4,14,987 crore, with a growth rate of 9.59% YoY.
• The Bank’s domestic deposits and advances grew at a higher rate than that of the Banking system. As against the Banking system’s YoY deposits growth of 11.5% and advances growth of 6.7% as of 1^st January 2021, the Bank’s YoY growth in deposits and advances is 17.7% and 9.1% respectively.
• Domestic CASA deposits recorded a growth of 12.04% YoY. The share of CASA deposits improved from 39.49% in Sep. 2020 to 40.61% in Dec. 2020. 
• Priority Sector advances constitute 42.87% of ANBC in Dec. 2020, above the regulatory requirement.
• Retail advances went up by 10.70% YoY and MSME advances went up by 14.10%.

ASSET QUALITY:

• Gross NPAs declined sequentially as well as YoY. From Rs.61,730 crore in Dec.2019 and Rs.56,232 crore in Sept. 2020, it declined to Rs.54,997 crore in Dec.,2020.
• Net NPAs came down from Rs.20,113 Crore in Dec.2019 and Rs.10,444 crore in Sept. 2020 to Rs.9,077 crore in Dec.2020.
• THE Gross NPA ratio improved both YoY and sequentially. From 16.30% in Dec 2019 and 13.79% in Sept. 2020, it came down to 13.25% in Dec. 2020.
• THE net NPA ratio improved further from 5.97% in Dec.2019 and 2.89% in Sept. 2020, it came down to 2.46% in Dec. 2020.
• The slippage ratio has come down from 2.13% in Dec.2019 to 0.14% in Dec.2020.
• Provision Coverage Ratio (PCR), which was 77.15% in Dec.2019 and touched 87.91% in Sept. 2020 moved up further to 89.32% in Dec.2020.

PROFIT:

• Net Profit jumped by 412% YoY, from Rs.106 Crores in Q3FY20 to Rs. 541 Crores in Q3FY21.
• Operating Profit stood at Rs.2,836 Crores in Q3FY21 against Rs. 4,135 Crores in Q3FY20.
• Non-Interest Income stood at Rs.2,068 Crores for Q3FY21 against Rs. 2,503 Crores in Q3FY20.
• Net Interest Income of the Bank stood at Rs. 3,740 Crores in Q3FY21 against Rs. 4,118 Crores in Q3FY20.

CAPITAL ADEQUACY:

• The Capital Adequacy Ratio stood at 12.51% in Dec. 2020 against CRAR of 12.80% in Sept.2020. The CET-1 and Tier-1 stood at 9.44%. The Bank raised Rs.750 crore Basel-III compliant AT-1 bonds in January 2021.
• The Risk Weighted Assets declined by 0.49%, from Rs.3,02,849 crore in Dec.2019 to Rs. 3,01,350 crore in Dec.2020.

FINANCIAL RATIOS:

• Global Return on Assets (RoA) increased by 22 bps YoY to 0.28% in Q3FY21 from 0.06% in Q3FY20.
• Global Net Interest Margin (NIM) fell marginally by 8bps from 2.66% in Q2FY21 to 2.58% in Q3FY21. Domestic NIM stood at 2.81% in Q3FY21 compared to 2.88% during Q2FY21.
• Cost of Deposits (global) declined from 4.58% during Q3FY20 to 4.03% in Q3FY21. The domestic cost of deposits also moved down from 5.08% to 4.48% during the same period.
• The cost-to-income ratio (global) increased to 51.17% in Q3FY21 from 45.91% in Q2FY21 due to increase in wage bill and provisions towards Pension and Gratuity.
• Credit Cost (global) came down from 4.50% in Q3FY20 and 2.33% in Q2FY21 to 0.68%in Q3FY21.

Key Parameters Q3FY21 Results (In Rs Crore)

Particulars	Q3FY20	Q2FY21	Q3FY21	YoY %	QoQ %	9MFY20	9MFY21	YoY %
Interest Income	10,835	10,796	10,243	-5.46	-5.12	31,825	31,273	-1.74
Interest Expenses	6,717	6,682	6,504	-3.18	-2.67	20,361	19,939	-2.07
Net Interest Income(NII)	4,118	4,113	3,740	-9.19	-9.09	11,464	11,334	-1.13
Non- Interest Income	2,503	1,613	2,068	-17.39	28.18	5,025	5,388	7.22
Operating Income (NII+Other Income)	6,621	5,726	5,807	-12.29	1.41	16,489	16,722	1.41
Operating Expenses	2,486	2,629	2,972	19.52	13.05	7,623	7,944	4.21
Operating Profit	4,135	3,098	2,836	-31.42	-8.46	8,866	8,778	-1.00
Total Provisions before tax	4,015	2,312	1,980	-50.68	-14.36	7,979	5,804	-27.26
– Provision for NPA	3,774	2,134	623	-83.49	-70.80	7,099	3,524	-50.36
Net Profit	106	526	541	412.39	2.84	615	1,910	210.83
NIM %(Domestic)	3.45	2.88	2.81			3.28	2.89

Particulars	Dec-19	Sep-20	Dec-20	YoY %	QoQ %
Global Deposits	5,22,138	6,07,529	6,11,879	17.19	0.72
Domestic CASA	1,91,735	2,07,281	2,14,826	12.04	3.64
Domestic deposits	4,53,458	5,32,095	5,36,171	18.24	0.77
Global advances	3,78,686	4,07,871	4,14,987	9.59	1.74
Domestic advances	3,32,734	3,62,666	3,63,009	9.10	0.09
Gross NPA	61,731	56,232	54,997	-10.91	-2.20
Net NPA	20,113	10,444	9,077	-54.87	-13.08

Particulars (Ratios, %)	Dec-19	Sep-20	Dec-20	YoY bps	QoQ bps
Asset Quality
Gross NPA	16.30	13.79	13.25	-305	-54
Net NPA	5.97	2.89	2.46	-351	-43
Provision Coverage Ratio (PCR)	77.15	87.91	89.32	1217	141
Capital Ratios
Tier-1	11.17	9.67	9.44
CET-1	11.14	9.67	9.44
CRAR	14.20	12.80	12.51

New Schemes launched during COVID-19 pandemic:

In order to alleviate stress on account of the break out of COVID-19, the Bank launched several COVID Emergency Credit Support Schemes for various sectors such as Corporate, MSME, Retail, Agriculture, and SHGs.

COVID Emergency Credit Support Scheme (CESS-2020): Scheme for all existing Fund Based working capital limit borrowers.

• No. of Loans Sanctioned – 78,320
•  Total amount Sanctioned – Rs. 2,802 crores

COVID 19 Personal Loan Scheme: Scheme for all customers drawing salary through our Bank and all existing Housing Loan/Personal Loan customers.

• No. of Loans Sanctioned – 62,039
• Total amount Sanctioned – Rs. 782 crores

COVID 19 SHG Loan Scheme: Scheme for all existing SHGs:

• No. of Loans Sanctioned – 55,715
• Total amount Sanctioned – Rs. 29 crores

Guaranteed Emergency Credit Line (GECL) – A special scheme as per GOI guidelines for sanctioning pre-approved limit of up to 20 percent of the loan outstanding as of 29/02/2020 to eligible borrowers.

• No. of Loans Sanctioned – 4,06,314
• Total amount Sanctioned – Rs. 5,263 crores.

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February 11, 2021