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State-owned Bank of India reported its Q1FY23 results today. The net profit doubled for the June quarter.
In Q1FY23, the company reported significant growth in various key financial metrics. Net Profit surged by an impressive 176% year-on-year (YoY) to reach Rs. 1,551 Crores. Operating Profit also displayed substantial growth, increasing by 72% YoY to Rs. 3,752 Crores. The Net Interest Income saw a substantial rise of 45% YoY, amounting to Rs. 5,915 Crores.
Moreover, the Net Interest Margin (NIM) on a global scale showed improvement, increasing by 49 basis points (bps) YoY. The company successfully reduced its Gross NPA ratio by 263 bps YoY and the Net NPA ratio by 56 bps YoY, reflecting improved asset quality. Additionally, the Provision Coverage Ratio (PCR) witnessed a positive trend, improving by 156 bps YoY to enhance risk coverage.
The company's business performance demonstrated positive growth, with the Global Business crossing the remarkable milestone of Rs. 12 lakh crore, marking an 8.61% YoY increase. Global Deposits and Gross Advances also displayed healthy growth, rising by 8.71% and 8.48% YoY, respectively. Of the Advances, RAM Advances showed notable growth, increasing by 11.75% YoY, accounting for a significant share of 55.39%.
In terms of lending, the company's focus on retail credit proved fruitful, with Retail Credit witnessing robust growth of 15.05% YoY. Agriculture Credit and MSME Credit also reported growth of 10.10% and 9.19% YoY, respectively.
Furthermore, the company's focus on CASA deposits yielded positive results, with CASA deposits increasing by 7.56% YoY, resulting in a CASA ratio of 44.52%. Notably, the GNPA ratio improved significantly by 263 bps YoY, standing at 6.67%, and the Net NPA ratio saw improvement, reducing by 56 bps YoY to 1.65%. The Provision Coverage Ratio (PCR) reached an impressive 89.52%.
The company maintained a strong capital adequacy position, with the CRAR (Capital Adequacy Ratio) standing at 15.60%. The CET-1 ratio, an important measure of core capital strength, was recorded at 13.02% as of Jun'23.
Overall, the company's financial results for Q1FY23 exhibited strong performance across various key parameters, showcasing its robust growth and sound financial health.
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