FINANCIAL RESULTS FOR
Q2/HY: FY 2015-16
November 9, 2015, Mumbai: Bank of India reported an operating profit of Rs. 1,458 crore for the quarter ended September 30, 2015. The Q2 results were announced by Shri Melwyn Rego (Managing Director & CEO) in the presence of Shri R P Marathe (Executive Director, BOI) and Shri R A Sankara Narayanan (Executive Director, BOI) at a press conference in Mumbai. The Net Interest Income stood at Rs. 3,020 crore and the Non-Interest Income stood at Rs. 778 crore. Operating Profit for H1FY16 stood at Rs. 3,162 crore. Net Interest Income stood at Rs. 5,932 crore. Non-Interest Income stood at Rs. 1,619 crore.
Shri Melwyn Rego, MD & CEO, Bank of India, said, “Looking ahead, the Bank would be adopting a three pronged strategy. The first and primary focus would be on NPA management for which a plan has been chalked out. The second would be on further augmentation of CASA from current level of 31% to 35% in the next 1 year. The third focus area would be on re-balancing of portfolio in favour of retail assets to reduce concentration risk. Currently, the corporate portfolio is 55% and retail portfolio is 45%. The Bank proposes to reverse the percentages with retail advances accounting for 55%. This would be done over a period of 2 years.” He added, “During the quarter there has been several positives. I would like to mention that CRAR, Provision Coverage Ratio, Net Interest Margin and CASA ratios have shown significant improvement. Provision Coverage Ratio has increased from 52% in March 2015 to 55% in September 2015. Due to shedding of high cost deposits, the net interest margin on domestic advances has, in fact, increased from 2.27 % in the March 2015 to 2.77% in the September 2015 i.e. an increase of 50 bps. On a global basis, the Net interest Margin has increased from 1.93% in March 2015 to 2.29% in September 2015 i.e. an increase of 36 bps.”
CASA Deposits increased from Rs.1,07,587 crore in Sep’2014 to Rs.1,19,513 crore in Sep’2015. (YoY growth: 11.08%). Savings Deposits increased from Rs.89,162 crore in Sep’2014 to Rs.100,790 crore in Sep’2015. (YoY growth: 13.04%). Current Deposits increased from Rs.18,425 crore in Sep’2014 to Rs.18,723 crore in Sep’2015. (YoY growth: 1.62%). As of September 30, 2015, Bank’s network distributed to 4,963 Branches and 7,716 ATMs, with increase of 71 Branches and 945 ATMs over 31.03.2015.
Global Business increased from Rs.9,17,720 crore in Sep’2014 to Rs.9,20,980 crore in Sep’2015. (YoY growth: 0.36%). Global Deposits increased from Rs.5,18,432 crore in Sep’2014 to Rs.5,25,195 crore in Sep’2015. (YoY growth : 1.30%). Global Advances declined from Rs.3,99,288 crore in Sep’2014 to Rs.3,95,785 crore in Sep’2015. (YoY growth: -0.88%).
Domestic Business increased from Rs.6,56,923 crore in Sep’2014 to Rs.6,68,421 crore in Sep’2015. (YoY growth: 1.75%). Domestic Deposits increased from Rs.3,88,377 crore in Sep’2014 to Rs.3,89,864 crore in Sep’15. (YoY growth: 0.38%).
Domestic Advances increased from Rs.2,68,546 crore in Sep’2014 to Rs.2,78,557 crore in Sep’15. (YoY growth: 3.73%).
International Business declined from Rs.2,60,797 crore in Sep’2014 to Rs.2,52,559 crore in Sep’2015. (YoY growth: -3.16%). International Deposits increased from Rs.1,30,055 crore in Sep’2014 to Rs.1,35,331 crore in Sep’2015. (YoY growth: 4.06%). International Advances declined from Rs.1,30,742 crore in Sep’2014 to Rs.1,17,228 crore in Sep’2015. (YoY growth: -10.34%)
Asset Quality: Gross NPA ratio stood at 7.55% in Sep’2015 as against 6.80% in Jun’2015. Net NPA ratio stood at 4.31% in Sep’2015 as against 4.11% in Jun’2015. Provision Coverage Ratio stood at 55.08%.
Capital Adequacy Ratio of the Bank under Basel III is 11.21% as on 30.09.2015.
• Tier I CRAR is 8.65% as on 30.09.15.
• Tier II CRAR is 2.56% as on 30.09.15
Important Ratios (HY: 2015-16):
• Global NIM stood at 2.21% and Domestic NIM stood at 2.66%.
• Yield on Advances (Global) stood at 8.45% and Yield on Advances (Domestic) stood at 10.84%.
• Cost of Deposits (Global) stood at 5.40% and Cost of Deposits (Domestic) stood at 6.90%.
• Business per Employee stood at Rs.18.20 crore and Business per Branch at Rs.184.53 crore in Sep’2015.
Awards & Accolades:
- Bank received “Best MSME Bank” and “Best Bank for operational performance” awards from CIMSME (Chamber of Indian Micro Small & Medium Enterprises).
- Bank received “Best Bank” award for “use of Technology for Financial Inclusion among Large Banks for FY 2014-15 from IDRBT at the hands of Governor, RBI.
- Bank received “Financial Inclusion & Payment System Award” by Elets Media at New Delhi at the hands of Minister of Rural Development.
- Bank received “PMJDY Excellence Award” from Honorable Union Minister
- Bank received IBA Award for “Best Financial Inclusion Technology Initiative” from IDRBT.
- Bank won IT excellence award by ETNOW and VMWare for effectively implementing Virtualization in the Bank.