| 365telugu.com Online News, Hyderabad11,November 2021: BOB quadruples Net profit in HY ended Sep’21 over HY ended Sep’20Net profit for the quarter up by 24.39% YoYGross NPA ratio declined to 8.11% in Sep’21 from 9.14% in Sep’20Domestic CASA up by 13.01% YoY, domestic CASA Ratio improved by 368 bps YoYCost to income ratio improved by 61 bps to 48.54% in H1FY22 as against 49.15% in H1FY21.Healthy Capital base – CRAR improved to 15.55% in Sep’21 from 13.26% in Sep’20 |
Key Highlights
- The domestic CASA of the Bank marked a growth of 13.01% on a YoY basis.
- Operating profit grew by 5.76% on a YoY basis.
- Net profit of the Bank marked a YoY growth of 24.39%, increased to INR 2,088 crore in Q2FY22 against INR 1,679 crore in Q2FY21. Net profit increased to INR 3,296 crore in H1FY22 from INR 814 crore in H1FY21.
- Gross NPA of the Bank significantly improved to 8.11% in Sep’21 from 9.14% in Sep’20.
- Global Net Interest Margin (NIM) increased to 2.85% in Sep’21 from 2.78% in Sep’20.
- Global Advances of the Bank increased by 2.10% YoY to INR 7,34,033 crore.
- Domestic Advances of the Bank increased to INR 6,23,368 crore, up by 2.99% on a YoY basis.
Business Performance
- Global Deposits increased by 0.54% to INR 9,59,483 crore on a YoY basis. Domestic Deposits increased by 3.43% to INR 8,64,603 crore in Sep’21.
- Domestic Current Account Deposits stood at INR 60,098 crore, registering a YoY growth of 15.34% and Domestic Savings Bank Deposits grew by 12.58% to INR 3,15,668 crore. Overall Domestic CASA registered a growth of 13.01% on a YoY basis.
- Organic Retail loan portfolio of the Bank grew by 10.25% on a YoY basis, led by growth in Personal loan portfolio which stood at 33.12%, 23.17% growth in Auto loan and 11.09% in Education loan.
- Agriculture loan portfolio grew by 7.39% on a YoY basis and stood at INR 1,00,748 crore
- Organic MSME portfolio of the Bank increased by 4.12% and stood at INR 89,339 crore.
Profitability
- Net Interest Income (NII) increased to INR 7,566 crore in Q2FY22 as against INR 7,410 crore in Q2FY21, registering a growth 2.11% YoY.
- Non-Interest Income during Q2FY22 increased by 22.99% YoY to INR 3,579 crore
- Operating Income of the Bank increased by 8.00% YoY to INR 11,145 crore in Q2FY22.
Operating Income for H1FY22 registered a growth of 12.71% and stood at INR 21,901 crore as against INR 19,432 crore in H1FY21.
- Cost of Deposits reduced to 3.52% in Sep’21 as against 3.99% in Sep’20. Yield on Advances stood at 6.55% in Sep’21 as compared with 7.08% in Sep’20.
- Operating Profit of the Bank increased to INR 5,670 crore in Q2FY22, up by 5.76% on a YoY basis.
- Bank reported a standalone Net Profit of INR 2,088 crore in Q2FY22 as against INR 1,679 crore in Q2FY21, registering a growth of 24.39% YoY.
- Global NIM increased to 2.85% in Q2FY22 from 2.78% in Q2FY21.
- Return on Assets (RoA) improved to 0.73% in Sep’21 from 0.59% in Sep’20.
- For the consolidated entity, Net Profit stood at INR 2,168 crore in Q2FY22 as against INR 1,771 crore in Q2FY21.
Asset Quality
- The Gross NPA of the Bank reduced to INR 59,504 crore in Q2FY22 from the level of INR 65,698 crore in Q2FY21. Subsequently the Gross NPA Ratio improved to 8.11% in Q2FY22 from 9.14% in Q2FY21.
- The Net NPA Ratio of the Bank stood at 2.83% in Q2FY22 as compared with 2.51% in Q2FY21.
- The Provision Coverage Ratio of the Bank stood at 83.42% including TWO and 67.06% excluding TWO in Q2FY22.
Capital Adequacy
- CRAR of the Bank improved to 15.55% in Sep’21 from 13.26% in Sep’20. Tier-I stood at 13.21% (CET-1 at 11.39%, AT1 at 1.82%) and Tier-II stood at 2.34% as of Sep’21.
- The CRAR and CET-1 of consolidated entity is at 16.06% and 12.02% respectively
Income & Expenditure
| Particulars (INR crore) | Q2FY21 | Q1FY22 | Q2FY22 | YoY (%) |
| Interest Income | 17,820 | 17,053 | 16,692 | -6.33 |
| Interest Expenses | 10,410 | 9,161 | 9,126 | -12.34 |
| Net Interest Income (NII) | 7,410 | 7,892 | 7,566 | 2.11 |
| Non- Interest Income | 2,910 | 2,863 | 3,579 | 22.99 |
| Operating Income | 10,320 | 10,755 | 11,145 | 8.00 |
| Operating Expenses | 4,958 | 5,154 | 5,476 | 10.45 |
| Operating Profit | 5,361 | 5,601 | 5,670 | 5.76 |
| Total Provisions (other than tax) and contingencies | 2,811 | 4,006 | 2,754 | -2.04 |
| of which, Provision for NPA Bad Debts Written-off | 2,277 | 2,557 | 2,600 | 14.20 |
| Profit before Tax | 2,550 | 1,596 | 2,916 | 14.37 |
| Provision for Tax | 872 | 387 | 828 | -5.05 |
| Net Profit | 1,679 | 1,209 | 2,088 | 24.39 |
Business details
| Particulars (INR crore) | Sep 30, 2020 | Jun 30, 2021 | Sep 30, 2021 | YoY (%) |
| Domestic deposits | 8,35,894 | 8,37,803 | 8,64,603 | 3.43 |
| Domestic CASA | 3,32,493 | 3,62,044 | 3,75,766 | 13.01 |
| Global deposits | 9,54,340 | 9,31,317 | 9,59,483 | 0.54 |
| Domestic advances | 6,05,245 | 6,00,970 | 6,23,368 | 2.99 |
| Of which, retail loan portfolio (Organic) | 1,11,944 | 1,19,729 | 1,23,424 | 10.25 |
| Global advances | 7,18,957 | 7,11,487 | 7,34,033 | 2.10 |
| Cost of Deposit % | 3.99 | 3.55 | 3.52 | |
| Yield on Advances % | 7.08 | 6.85 | 6.55 | |
| Cost Income Ratio % | 48.05 | 47.92 | 49.13 | |
| NIM Global % | 2.78 | 3.04 | 2.85 | |
| RoA % | 0.59 | 0.42 | 0.73 |
| Particulars | Sep 30, 2020 | Jun 30, 2021 | Sep 30, 2021 |
| CRAR (%) | 13.26 | 15.40 | 15.55 |
| Tier-1 (%) | 10.75 | 13.06 | 13.21 |
| CET-1 (%) | 9.21 | 11.25 | 11.39 |
| Gross NPA (%) | 9.14 | 8.86 | 8.11 |
| Net NPA (%) | 2.51 | 3.03 | 2.83 |
| PCR (with TWO) (%) | 85.35 | 83.14 | 83.42 |
| Particulars | Q2FY21 | Q4FY21 | Q1FY22 |
| Credit Cost (%) | 1.24 | 1.36 | 1.46 |