industry

BoB's Net Profit Jumps 79% in Q1


(BoB) on Saturday reported a 79% jump in net profit on the back of strong loan growth and fall in provisions as asset quality improved.

Net profit increased to ₹2,168 crore in the quarter ended June 2022 from ₹1,209 crore, helped by a 12% rise in net interest income (NII) to ₹8,838 crore as both corporate and retail loans expanded.

The bank’s loan book increased 18% to ₹8.39 lakh crore, led by a 23% growth in retail loans and also a 17% increase in corporate loans.

CEO Sanjiv Chadha said demand from sectors such as cement, steel and roads has been strong, together with demand for international loans from Indian companies abroad.

“Since last year, when corporate margins were low we explored high-rated syndicated loans like external commercial borrowings from Indian companies abroad where margins were good and we have seen growth in that segment,” he said.

Asset quality improved as net NPA ratio fell to 1.58% in June 2022 from 3.03% a year ago. Total provisions fell 58% to ₹1,685 crore, making up for a ₹1,168- crore hit the bank had to take on treasury income due to a fall in bond prices during the quarter.



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