The Bank of India (BoI) on Friday announced a 90% increase in net profit to Rs 1,027 crore for the third quarter ended December 2021 as the bad debt situation improves.
The state-owned bank had recorded a net profit of Rs 540.72 crore in the period a year ago.
However, total revenue in the quarter declined to Rs 11,211.14 crore from Rs 12,310.92 crore in the same period a year ago, the BoI said in a regulatory filing.
Net interest income (NII) also slipped to Rs 3,408 crore from Rs 3,739 crore in the same period a year ago, he said.
On the asset quality front, gross bad debts or non-performing assets (NPA) fell to 10.46% of gross advances at the end of December 2021, from 13.25% a year ago.
However, the net NPA increased slightly from 2.46% to 2.66%. As a result, non-tax and contingency provisions decreased significantly to Rs 334.93 crore from Rs 1,809.63 crore in the same quarter a year ago.
The provision coverage ratio (PCR) was high at 86.86% at the end of December.
“As of December 31, 2021, the capital adequacy ratio (CRAR) stood at 16.66% compared to 17.05% in September 2021 and 12.51% in December 2020”, he specifies.