Bank of India Q1 profit surges nearly three-fold to Rs 1,551 cr

New Delhi: State-owned Bank of India (BOI) on Friday reported a nearly three-fold jump in net profit to Rs 1,551 crore in the June quarter due to a decline in bad loans.

The Mumbai-based lender had posted a net profit of Rs 561 crore in the year-ago period.

The total income in the first quarter of the current fiscal rose to Rs 15,821 crore as against Rs 11,124 crore in the same period a year ago, Bank of India said in a regulatory filing.

The lender's interest income also increased to Rs 14,359 crore from Rs 9,973 crore in the same quarter a year ago.

On the asset quality side, the bank witnessed an improvement with the gross Non-Performing Assets (NPAs) easing to 6.67 per cent of the gross advances by June 2023 from 9.30 per cent a year ago.

The net NPA too declined to 1.65 per cent against 2.21 per cent in the same period of the previous year.

As a result, provisions for bad loans came down to Rs 777 crore compared to Rs 1,304 crore in the same quarter a year ago.

Provision Coverage Ratio of the bank increased to 89.52 per cent as of June 2023 against 87.96 per cent at the end of the first quarter of the previous financial year.

The capital adequacy ratio of the bank declined marginally to 15.60 per cent at the end of June compared to 15.61 per cent a year ago.