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Public sector lender Bank of India (BoI) on Tuesday reported a net profit of 606 crore in the three months through March, more than double its profit in the same period last year owing to higher net interest income and a decline in provisions. 

Its net interest income (NII) or the difference between interested earned and expended, stood at 3,986 crore, up 36% from the same period last year. The bank’s domestic net interest margin (NIM), a key indicator of profitability, was up 39 basis points (bps) on a sequential basis. Its total provisions were down 4% y-o-y to 1,541 crore. 

The bank witnessed an improvement in asset quality as gross non-performing assets (NPAs) as a percentage of total loans declined 379 bps y-o-y and 48 bps sequentially to 9.98% as on 31 March. Loans worth 1,502 crore slipped into NPA category in the March quarter, lower than 1,760 crore in the December quarter.

Bank of India reported 8.73% y-o-y rise in domestic advances to 3.94 trillion in Q4 FY22 and local deposits contracted 0.05% y-o-y to 5.5 trillion in the same period.

In FY23, the bank expects to achieve credit growth of 10-12%.

“For the entire last year, we sanctioned about more than 70,000 crore (of corporate loans) but the availment was less at around 29,000 crore. In our usual overdraft limits, the availment pattern has been around 68-69%," said A K Das, chief executive, Bank of India. 

Das said that in FY23, apart from small businesses, mid-cap segments, corporates will receive greater focus, which will be aided by government initiatives such as the 7.5-trillion capex plan, which will have multiplier effects and create new demand.

“We have got adequate capital to fund the corporate sector growth," he said.

Its shares on BSE stood at 47.15 on Tuesday, up 1.51%% from its previous close.

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