Bank of India Q4 net more than doubles to Rs 1,350 cr on improvement in NII

Public sector lender Bank of India (BoI) net profit more than doubled year on year to Rs 1,350 crore for the quarter ended March 2023 (Q4FY23) on improvement in Net Interest Income (NII). Sequentially, however, the profit increased from Rs.1,151 crore in Q3 FY23. For FY23, the bank’s net profit grew by 18.15% to Rs.4,023 crore as against Rs.3,405 crore in FY22.

The Board of Directors has declared a dividend of Rs 2.0 per share (Rs 10 per share) for the financial year 23, subject to the approval of the shareholders, the bank informed BSE.

The capital adequacy ratio of the investment bank was 16.28 percent with the ordinary equity ratio standing at 13.6 percent at the end of March.

The bank’s Net Interest Income (NII), interest income minus interest expense, grew by 37.77 per cent year-on-year to Rs.5,493 crore in Q4FY23 vs. Rs.3987 crore in Q4FY22. Net interest margin improved (NIM) to 3.15 percent in the fourth quarter of FY23 from 2.56 percent in the fourth quarter of FY22.

The bank said in a statement that advances expanded by 12.87 percent year-on-year to reach 5.15 trillion rupees in FY23. Total deposits increased by 6.64 percent year-on-year to 6.69 trillion rupees. The share of low-cost deposits – current account and savings accounts (CASA) – was 44.73 percent at the end of March 2023, down from 45.02 percent a year earlier, according to an analysts’ presentation.

The asset quality profile improved with total non-performing assets (NPA) declining to 7.31 percent in March 2023 from 9.98 percent in the same month in 2022. Net NPAs also declined by 1.66 percent in March 2023 from 2.34 percent annually since .