BoI Q1 profit surges nearly three-fold to `1,551 crore

Mumbai: State-owned Bank of India Friday reported a nearly three-fold surge in net profit at Rs 1,551 crore in the June 2023 quarter, due to a decline in bad loans and higher margins following repricing of existing assets.

The city-based lender said its total income rose to Rs 15,821 crore against Rs 11,124 crore in the same period a year ago. Of this, the key profitability metric net interest income rose 45 per cent to Rs 5,915 crore and non-interest income increased 27 per cent to Rs 1,462 crore.

The yield on advances rose by 157 bps, boosting its net profit by 176 per cent to Rs 1,551 cr in the reporting period.

The bank saw major improvement in asset quality with gross NPAs falling by 22.14 per cent to Rs 34,583 crore from Rs 44,415 crore and net NPAs declined by 16.96 per cent to Rs 8,119 crore from Rs 9,775 crore.

In percentage terms, the gross NPA ratio improved 263 bps to 6.67 from 9.30 and the net NPA ratio improved by 56 bps to 1.65 in June 2023 from 2.21 in June 2022.