Bank of India(BoI) Q3 net profit jumps 62%

 


Public sector lender Bank of India (BOI) on February 2 reported a net profit of Rs Rs 1,869.5 crore for the December quarter of the financial year 2023-24, up 62.4 percent from the year-ago period from Rs 1,151 crore.


The bank's gross non-performing asset (NPA) stood at 5.35 percent, down from 7.66 percent in the year-ago period. On the other hand, net NPA stood at 1.41 percent, improving from 1.61 percent.


State-owned Bank of India (BoI) on Friday posted a 62 per cent jump in net profit to Rs 1,870 crore in the December quarter on account of decline in bad loans. The Mumbai-headquartered bank had earned a net profit of Rs 1,151 crore in the year-ago period.


The lenders' total income increased to Rs 16,411 crore during the third quarter of the ongoing fiscal against Rs 14,160 crore a year ago, BoI said in a regulatory filing.


The interest income of the bank rose to Rs 15,218 crore as against Rs 12,728 crore in the third quarter of the previous year.


Gross Non-Performing Assets (NPAs) of the bank declined to 5.35 per cent of the gross loans by the end of December 2023 from 7.66 per cent a year ago.


Similarly, net NPAs, or bad loans, came down to 1.41 per cent from 1.61 per cent at the end of the third quarter.


Capital Adequacy Ratio of the bank improved to 16.06 per cent as against 15.60 per cent at the end of December 2022.


During the quarter ended December 31, 2023, the bank issued additional 44,91,01,796 equity shares of face value Rs 10 each at an issue price of Rs 100.20 under Qualified Institutional Placement (QIP) on December 11, 2023 and raised an amount of Rs 4,500 crore, it said.


Accordingly, the shareholding of the Government of India in the bank has reduced to 73.38 per cent as on December 31, 2023

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Latest Bank merger news of PSU banks and PSU Insurance Company

 


A government document shared on social media has triggered speculation about possible PSU bank mergers between Union Bank and UCO Bank, and Bank of India and Bank of Maharashtra. The document, whose source couldn't be verified, said that a Parliamentary committee will hold discussions with four PSU banks in the first week of January under banking laws, which govern mergers and acquisitions, among other things.

However, the government has not yet provided official information regarding the merger. Neither of the four PSU banks mentioned have made any stock exchange filings in this regard.


The document being circulated on X (formerly Twitter) is a government PDF issued in the name of Ramesh Yadav, Under Secretary of the Government of India. The letter is issued to the Governor, Reserve Bank of India, Chairman of LIC, IRDAI, and NABARD, along with MD and CEOs of UCO Bank, Bank of Maharashtra, Bank of India, and Union Bank of India.

The PDF is also addressed to CMDs of New India Assurance Company, United India Insurance Company, Oriental Insurance Company, National Insurance Company, and MD & CEO of SBI Life Insurance Company. The subject of the alleged government PDF states 'Study Visit programme of the Committee on Subordinate Legislation, Lok Sabha to Mumbai and Goa from 2 to 6 January 2024'.

The 2-day programme includes informal discussions with the representatives of Union Bank of India and UCO Bank on January 2, and with representatives of Bank of Maharashtra and Bank of India on January 4, 2024, on rules/regulations framed under Banking Regulations Act 1949 and other relevant Acts as applicable to them and the regulatory mechanism in post-merger scenario.

The Finance Ministry has reportedly issued a clarification, saying that this is a parliamentary committee on subordinate legislation, and it has no connection whatsoever with the policies of bank mergers, according to CNBC-Awaaz. Amid the merger buzz, the ministry reportedly changed the agenda of its meeting. According to the new agenda, there is no mention of the word “Merger”, which simply means that there is no proposal for a merger between Union Bank of India and UCO Bank, Bank of India, and Bank of Maharashtra, said CNBC Awaaz in its report.

Meanwhile, No proposal to merge the public sector banks is being considered by the government and the discussions were part of a ‘routine exercise, Reuters also reported citing two sources from the Ministry of Finance.










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Bank of India(BoI) Q2 Net profit rises 52%

 


Bank of India on November 4 reported a 52 percent rise in its net profit to Rs 1,458.43 crore in the second quarter of the current financial year. In the year-ago period, the state-owned lender reported Rs 960 crore net profit.


This was on the back of sharp improvement in the asset quality and increase in margins of the lender.


On a sequential basis, net profit has fallen 6 percent.


In the reporting quarter, the asset quality of the state-owned lender improved sharply with gross non-performing assets (NPA) ratio stood at 5.84 percent, as compared to 8.51 percent in a similar period last year.


Similarly, net NPA ratio fell to 1.54 percent as on September 30, 2023, as against 1.92 percent in a year ago period, and 1.65 percent in a quarter ago period.


In absolute terms, gross NPA of the bank stood at Rs 31,719 crore as on September 30, 2023, as compared to Rs 34,582 crore as on June 30, 2023, and Rs 42,014 crore as on September 30, 2022.


Whereas, net NPA stood at Rs 7,978 in July-September quarter, as against Rs 8,119 crore in a quarter ago period, and Rs 8,836 crore in a year ago period.


In reporting quarter, Provision Coverage Ratio (PCR) improved by 62 basis points (bps) on-year, as per release. PCR of the state-owned bank stood at 89.58 percent as on September 30, 2023, as against 88.96 percent in a year ago period.


Net interest Income


The net interest income (NII) of the bank in July-September quarter rose 13 percent on-year to Rs 5,740 crore, as compared to Rs 5,083 crore in a year ago period.


However, on a quarterly basis, NII of the bank fell 3 percent.


The interest income of the bank in the reporting quarter was Rs 14,971 crore, and interest expanded stood at Rs 9,231 crore.


Net interest margins of Bank of India by 4 bps in reporting quarter to 3.08 percent. In a year ago period, it stood at 3.04 percent, and 3.03 percent in a quarter ago period.


Deposits and advances


Global Business increased by 9.25 percent on-year from Rs 11,41,356 crore in September 2022 to Rs 12,46,879 crore in September 2023.


Global Deposits increased by 8.68 percent on-year from Rs 6.5 lakh crore in September 2022 to Rs 7.03 crore in September 2023.


Global Advances increased by 10 percent on-year from Rs 4.94 lakh crore in September 2022 to Rs 5.43 lakh crore in September 2023.


Domestic Deposits increased by 8.61 percent on-year from Rs 5.51 lakh crore in September 2022 to Rs 5.99 lakh crore in September 2023.


Domestic Advances increased by 9.80 percent on-year from Rs 4.12 lakh crore in September 2022 to Rs 4.53 lakh crore in September 2023.



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Bank of India(BoI) Q1 Results: Net profit jumps 176%

 


Public sector lender Bank of India on July 28 reported a 176 percent jump in net profit at Rs 1,551 crore in the first quarter of the current fiscal. It had clocked a net profit of Rs 561 crore in the year-ago quarter.

The bank's net interest income increased by 45 percent on a year-on-year basis (YoY ) to Rs.5,915 crore.


The net interest margin (NIM) increased by 51 bps to 3.37 percent in the April-June FY24 quarter against 2.87 percent in the corresponding quarter last year.


The gross non-performing assets of the bank declined to 6.67 percent from 9.30 percent in the same quarter of the previous year, while its net non-performing assets (NNPAs) declined by 1.65 percent from 2.21 percent last year.


Domestic deposits of the bank increased by 7.98 percent YoY to Rs.5.89 lakh crore in the quarter. Current account and savings account (CASA) went up by 7.56 percent YoY to Rs. 2.6 lakh crore in the April-June FY24 quarter and CASA ratio stood at 44.52 percent.


Domestic advances increased by 7.98 percent YOY to Rs. 4.33 lakh crore.

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Bank of India(BoI) Q4 net more than doubles on improvement in NII


Public sector lender Bank of India’s (BoI) net profit more than doubled year-on-year (YoY) to Rs 1,350 crore for the quarter ended March 2023 (Q4FY23) on improvement in net interest income (NII). However, sequentially, the profit rose from Rs 1,151 crore in Q3FY23. For FY23, the bank's net profit grew 18.15 per cent to Rs 4,023 crore against Rs 3,405 crore in FY22.


The board of directors declared a dividend of Rs 2.0 per share (Rs 10 each) for FY23, subject to shareholders' approval, the bank informed BSE.



BOI's capital adequacy ratio stood at 16.28 per cent with the Common Equity Tier of 13.6 per cent at the end of March.


The bank's net interest income (NII), interest revenues minus interest expenses, grew by 37.77 per cent YoY to Rs 5,493 crore in Q4FY23 as against Rs 3,987 crore for Q4FY22. The net interest margin (NIM) improved to 3.15 per cent in Q4FY23 from 2.56 per cent in Q4FY22.



The bank in a statement said that the advances expanded by 12.87 per cent YoY basis to Rs 5.15 trillion in FY23. Total deposits increased by 6.64 per cent YoY to Rs 6.69 trillion. The share of low-cost deposits — current account and saving accounts (CASA) — stood at 44.73 per cent at the end of March 2023, down from 45.02 per cent a year ago, according to an analyst presentation.


The asset quality profile improved with gross non-performing assets (NPA) declining to 7.31 per cent in March 2023 from 9.98 per cent in the same month in 2022. The net NPAs also declined 1.66 per cent in March 2023 from 2.34 per cent a year ago. 



The provision coverage ratio (PCR) improved to 89.68 per cent in March 2023 from  87.76 per cent a year ago.



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Bank of India's Q1 profit declines 22% to Rs 561 cr as provisions rise

 




Bank of India's net profit declined 22.08 per cent year-on-year (YoY) to Rs 561 crore in the first quarter of financial year 2022-23 (Q1FY23) on fall in non-interest income and rise in provisions for bad loans.


The Mumbai-based public sector lender had posted a net profit of Rs 720 crore during the year-ago period (Q1FY22).


While the bank’s net interest income (NII) was up 29.4 per cent at Rs 4,072 YoY, net interest margin (NIM) improved to 2.55 per cent from 2.16 per cent a year ago, it said in a statement.


Its non-interest income declined sharply to Rs 1,152 crore in Q1FY23 from Rs 2,320 crore in the year-ago period. Its treasury revenues, which have a significant share in non-interest income, were hit due to hardening of bond yields.


The bank’s asset quality profile improved with gross non-performing assets (GNPAs) at 9.3 per cent till June 2022 from 13.5 per cent in the year-ago quarter. Net NPAs dipped to 2.21 per cent in June 2022 from 3.35 per cent a year ago.


NPA provisions rose to Rs 1,304 crore in the first quarter of FY23 from Rs 873 crore in the same quarter a year ago. The provision coverage ratio improved to 87.96 per cent for the quarter under review from 86.17per cent a year ago.


While the bank’s loan portfolio grew 15.2 per cent YoY to Rs 4.77 trillion as of June 2022, the deposits increased 2.78 per cent YoY to Rs 6.4 trillion in June 2022.


The total capital adequacy ratio (CAR) stood at 15.61 per cent in June 2022, up from 15.07 per cent in the same month a year ago.



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BoI expects to recover 2,500 crores of bad loans per quarter


Bank of India (BoI) has set an ambitious Rs 2,500 crore quarterly recovery target for the current fiscal year as the public sector bank looks to expand after years of stagnation. CEO AK Das said he expects the loan book to grow in double digit this year and hopes to keep slippages at an average of Rs 600 crore per quarter.


The public sector bank reported gross NPAs at 9.98% of loans as of March 2022, down from 10.46% in the quarter ended December. Das said he expects the bank's NPA to be below 8% in March 2023 due to a combination of improving bad loan recoveries and restrained fresh slippages.


"Our target is to recover Rs 2500 crore per quarter and allow only Rs 600 cr to slip so that we are in positive territory on NPAs. Until the third week of June, we have done Rs 1900 crore of recoveries so far in the first quarter," Das said.


However, a large part of the recoveries depend on the bank's cases in the National Company Law Tribunal (NCLT) in which Rs 32,000 crore out of 45,000 crore gross NPAs of the bank are awaiting progress. The bank will also sell Rs 2400 cr bad loans to the newly launched National Asset Reconstructuin Co Ltd (NARCL).


BoI is the lead lender to the debt laden Kishore Biyani promoted Future Group that owes lenders more than Rs 25,000 crore. In April it initiated insolvency proceedings against the Future group which is yet to be admitted by the National Company Law Tribunal (NCLT). Das said the bank recognised Rs 600 crore of slippages from the Future Group in the quarter ended June 2022 and has now fully provided for its exposure to the group.


Das said higher recoveries will compliment the bank's growth plans as it looks to expand its loan book with larger bets on the mid cap segment.


"This year our focus is more on mid cap segment where we can do much better. We are envisaging a 8% to 10% loan growth this fiscal which is at the system or just above. We expect to our net interest margin to be as close to 3% as possible and credit cost of max 1% because we have done a lot of proactive provisioning. Housing and retail will continue to to grow faster than the rest," Das said.


He expects corporate loans to grow this year after shrinking last year mainly due to demand from core sectors like steel and cement.


"I expect big bang growth in the construction sector which has forward and backward integrations with as many as 132 sectors which along with the government's push for infrastructure will create a multiplier effect." Das said.


Corporate demand has been muted for the bank as out of the Rs 65,000 cr sanctioned not even half has been utilised.


The bank's board has approved Rs 2500 crore of equity raising but with its capital adequacy at 17% currently, the call to raise more equity will only be taken at the end of September, Das said.

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RBI imposes penalties on BoI and Federal Bank


Reserve Bank of India (RBI) on Friday said it has imposed a penalty of Rs 5.72 crore on Federal Bank for deficiencies in regulatory compliance.


A  penalty of Rs 70 lakh has also been imposed on Bank of India for non-compliance with certain provisions of Know Your Customer (KYC) norms and instructions on 'compliance function in banks' issued by RBI, it said in a statement.


About Federal Bank, RBI said the bank failed to ensure that no incentive (cash or non-cash) was paid to its staff engaged in insurance broking/corporate agency services by the insurance company, according to a separate statement.



RBI had carried out Statutory Inspection for Supervisory Evaluation (lSE) of the bank with reference to its financial position as on March 31, 2020.


In another statement, RBI said a fine of Rs 7.6 lakh has been imposed on Dhani Loans and Services Limited, Gurugram for non-compliance with KYC norms.


RBI said the penalities are based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the two banks and Dhani Loans and Services with their customers.

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Six Indian banks sue GVK for Rs 12,114 crore: Report


Six Indian banks are reportedly suing the GVK Group for $1.5 billion or Rs 12,114 crore, according to the Times of India. The six banks include Bank of Baroda, Bank of India, Canara Bank , Icici Bank , Indian Overseas Bank, and Axis Bank.


According to the report, GVK defaulted on a $1-billion loan and a $35-million letter of credit facility given by banks in 2011, and a $160-million loan lent in 2014.


GVK Coal Developers (Singapore) and nine other GVK Group companies are being sued in the case which opens Monday.


As per the banks, GVK failed to make repayments as they fell due and failed to obtain a mining lease in the Alpha project in Queensland, Australia by December 31, 2012, which was a project milestone that had to be satisfied. The banks reportedly asked GVK in November 2020 to cancel the agreement and requested repayment. But neither GVK nor its guarantors has paid any of the sums owed, the banks claimed.


On the other hand, GVK argued that "the loans was to provide part funding for the acquisition of the Hancock companies in Australia to develop their assets — including the Alpha project — into working coal mines".


“The deterioration in the market for coal, the lack of third-party investment, legal challenges to the mining projects in the courts of Queensland, meant that very little progress was made to develop the mining assets,” GVK states. GVK states it could not obtain the mining lease owing to litigation by environmental groups but denies this was a “default”.

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Privatisation Of Bank: Two banks to be sold in the country, centre to speed up law change process

 


The Centre speed up the process of privatising two State-owned banks. News agency PTI quoted a source from the Centre as saying on Wednesday. The Modi government at the Centre had earlier amended the 'Banking Regulation Act' to pave the way for private investment in State-owned banks. According to sources, the Centre wants to pass a bill in this regard in the upcoming monsoon session of Parliament.

Union Finance Minister Nirmala Sitharaman had said last year that the Centre wants to start the process of privatising some state-owned banks. Therefore, the Bank Nationalization Acts of 1970 and 1980 will be amended and the Bank Control Act of 1949 will be amended. According to finance ministry sources, the process has begun. The government has also started preparing the draft of the 'Banking Regulation Act'. If all goes well, the amendment will be passed in the monsoon session. Of course, there is a good chance of the opposition being hindered. However, due to the majority, the government should not have any problem in passing this law.

The amendment has been passed in parliament and there will be no bar on the privatization of State-owned banks. Only then will the process of privatization of state-owned banks begin. Initially, two state-owned banks have also been listed for disinvestment. The name of which two banks will be privatised is yet to be announced by the Centre. According to sources, the Modi government initially chose four medium-sized banks for privatisation. The four banks that were placed in the initial list for privatisation are Bank of Maharashtra (BoM), Bank of India (BoI), Indian Overseas Bank(IOB) and Central Bank of India. Later, niti aayog proposed that most of the shares of Indian Overseas Bank and Central Bank of India be sold. The Modi government can go ahead with the NITI Aayog's proposal.

This is not the end of it, the government also wants to complete the privatization process of the tate-owned company BPCL quickly. Sources claim that only 52.3 per cent stake in BPCL held by the Centre will be sold. Earlier, the Modi government had taken the initiative to sell the shares of BPCL. Initially three companies showed interest in buying bpcl shares. But in the end, only one company survives in the race, the sources claim.


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Bank of India(BoI) Q4 net profit rises 142.3%


Public sector lender Bank of India’s (BOI) net profit rose by 142.3 per cent to Rs 606 crore in Q4FY22, on improvement in net interest margins


It posted a net profit of Rs 250 crore in Q4FY21, the bank said in a statement.



For FY22, the net profit rose by 57.6 per cent to Rs 3,405 crore from Rs 2,160 crore in FY21.



The board recommended a dividend of Rs 2 per equity share (of face value of Rs 10) for 2021-22 subject to shareholders' nod. The bank's share was trading 2.48 per cent higher at Rs 47.6 per cent on BSE.



The Mumbai-based lender’s net interest income (NII) expanded by 35.77 per cent to Rs 3,986 crore in Q4FY22 from Rs 2,936 crore in Q4FY21. The net interest margin (NIM) improved to 2.58 per cent for Q4FY22 as against 2.01 per cent for Q4FY21.



Non-interest income declined from Rs 1,829 crore in Q4FY21 to Rs 1,587 crore in Q4FY22.



Advances increased by 11.35 per cent YoY to Rs 4.57 trillion as of March 2022. The retail, agriculture and MSME (RAM) loan portfolio increased 15.7 per cent YoY to Rs 2.16 trillion as of March 2022, BOI added.



The deposits rose by 0.12 per cent to Rs 6.27 trillion in March 2022. The share of low cost deposits – Current Account and Savings Account (CASA) – in domestic deposits stood at 45.02 per cent as at March 31, 2022, up from 41.27 per cent in March 2021.



The asset quality profile improved with Gross Non-Performing Assets (NPAs) declining to 9.98 per cent as at March 31, 2022 from 13.77 per cent in March 202. Its Net NPA stood at 2.34 per cent at end of March 2022 down from 3.35 per cent a year ago.



The provision coverage ratio (PCR) for bad loans improved to 87.76 per cent in March 2022 from 86.24 per cent a year ago.



The capital adequacy ratio of the Bank, as per Basel III, was 17.04 per cent as at March 31, 2022, up from 14.93 per cent a year ago.



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Bank of India Q2 profit almost doubles as asset quality improves

 



Public sector lender Bank of India on November 2 has reported profit at Rs 1,051 crore for the quarter ended September 2021, almost double from Rs 525.8 crore in the year-ago period, on falling slippages and decline in provisions.


Its net interest income, the difference between the interest earned from lending activities and the interest paid to depositors, fell 14.3 percent year-on-year to Rs 3,523.5 crore in September 2021 quarter, with a 2.7 percent YoY increase in gross advances and 0.89 percent rise in deposits. Net interest margin at 2.42 percent improved by 26 basis points (bps) sequentially but dropped 24 bps YoY. One basis point is a hundredth of a percentage point.


Advances increased to Rs 4.18 lakh crore in September 2021 quarter, from Rs 4.07 lakh crore in same the quarter last year, while deposits jumped to Rs 6.12 lakh crore from Rs 6.07 lakh crore in the same period," the bank told the BSE.


Asset quality improved with the gross non-performing assets (NPAs) as a percentage of gross advances falling 151 bps sequentially to 12 percent and net NPA declining 56 bps QoQ to 2.79 percent in the quarter ended September 2021.


Slippages dropped significantly to Rs 1,307 crore as of September 2021, compared to Rs 3,942 crore in June 2021 quarter, which as a percentage of standard advances was at 0.36 percent against 1.09 percent respectively, said the bank, adding credit cost declined further to 0.26 percent in Q2FY22, from 0.95 percent in Q1FY22.


The bank reported a sharp fall in provisions and contingencies for the quarter at Rs 894 crore, declining 46 percent from Rs 1,652 crore in Q1FY22 and falling 56.3 percent from Rs 2,045 crore in Q2FY21.


Provisions refer to the amount banks need to set aside to cover the losses from a loan account. When an account turns into an NPA, the provisions required will equal the full loan amount.​
Bank of India said non-interest income increased by 58.71 percent YoY to Rs 2,136 crore for the September 2021 quarter. However, pre-provision operating profit at Rs 2,678 crore fell by 5.4 percent YoY.

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Bank of India(BoI) opens first-ever branch in Ladakh

 


Bank of India on Friday extended its operations to the Union Territory of Ladakh by opening its first-ever branch here with its top official asserting that the bank is fully committed to extending.

 its banking services to the people living in far-flung areas of the country. This was the 5,086th branch opened by a bank in the country and abroad, and is fully computerised and digitised with a facility of E-Gallery to provide 24x7 banking to the residents of Leh, a spokesperson of the Bank of India (BOI) said.

He said BOI Managing Director and Chief Executive Officer A K Das opened the branch in the presence of Field General Manager A K Jain, Zonal Manager Vasudev, Branch Manager Sangeeta and various local dignitaries and customers.

"The bank is fully committed to extending its banking services to the people living in the far-flung areas of the country. The opening of a branch here is an important step towards this goal," Das said.

He said it would not only boost economic activities in the region but will also help the local people to use various banking products like housing, vehicle, education and agriculture loans, and also reap the benefits of other government schemes.


Das added that the bank has a unique salary account scheme for defence and paramilitary personnel providing free insurance cover.

"The bank also provides home, vehicle and consumer loans at low rates. Recently, the bank has reduced the interest rate for housing loans to 6.50 per cent and that for vehicle loans to 6.85 per cent," he said.
Das added that the bank will continue to endeavour to provide the best-quality banking facilities to its customers and connect more and more people to mainstream banking with fully digitised facilities.

Meanwhile, in continuation to the bank's mission to reach maximum customers across India, it also conducted a 'customer outreach programme' at Leh branch, wherein Das distributed loan sanction letters to various beneficiaries, the spokesperson said.


Under the bank's corporate social responsibility, he said Das is presenting 'paper cutting machine' to a non-governmental organisation of Ladakh, People's Action Group for Inclusion and Right, who is assisting differently-abled persons by empowering them with various skills to earn their livelihood and live a respectable life.
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This company picks up 4% stake in Bank of India via open market transaction

 


State-owned Bank of India on Friday said LIC has picked up nearly 4 per cent equity shares of the bank through an open market transaction a day earlier.

LIC has picked up nearly 3.9 per cent (15,90,07,791 shares) of the bank through open market acquisition on September 2, 2021, Bank of India said in a regulatory filing.

Before the latest acquisition of shares in the bank, LIC held over a 3.17 per cent stake in the state-owned bank. The bank said that LIC's stake in Bank of India has now increased to 7.05 per cent, equivalent to 28,92,87,324 shares


As per Sebi regulations on substantial acquisition of shares and takeovers, companies have to inform the stock exchanges when an entity holds more than 5 per cent shares in a listed company.

Last week, the bank closed its QIP in which it raised Rs 2,550 crore by allotting preference shares to qualified institutional buyers (QIBs).

In the qualified institutional placement (QIP), which closed on August 30, LIC picked up the biggest chunk by acquiring nearly 39.22 per cent (15,90,07,791 shares) of the equity shares offered in the issue. Through this QIP, the government shareholding in the bank came down to 82.50 per cent from 90.34 per cent earlier.

Apart from using the equity capital to fund business growth, the bank also has to bring down the government's shareholding in the bank. Thus, it is aiming to reduce the government holding by selling the equity.


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Bank of India(BoI) Q1 net profit down 14.7%


Bank of India's (BoI's) net profit for June 2021 quarter fell by 14.7 per cent on a year-on-year basis, to Rs 720 crore on higher provisions for bad loans and standard assets.

It had posted a net profit of Rs 844 crore in the same quarter last year (Q1FY21).

The bank said in a statement its net interest income (NII) fell in Q1FY22 to Rs 3,145 crore from Rs 3,481 crore in the quarter ended June 2020 (Q1FY21). Net interest margin fell to 2.16 per cent for Q1 against 2.48 per cent in the year-ago period.

The non-interest income rose 39.25 per cent YoY to Rs 2,376 crore, from Rs 1,707 crore in Q1FY21.

Asset quality profile improved with gross non-performing assets down to 13.51 per cent in June, from 13.91 per cent last year. Net NPA also fell to 3.35 per cent, from 3.58 per cent in June 2020. Its provision coverage ratio improved to 86.17 per cent in June 2021, from 84.87 per cent a year ago.

Its provisions for bad and non-performing assets rose to 873 crore in Q1Fy22, as against Rs 767 crore in Q1FY21. Those for standard assets rose to Rs 898 crore from Rs 759 crore.

Advances growth was flat to Rs 4.15 trillion. The retail loan portfolio rose by 10.61 per cent (y.o.y) to Rs 1.25 trillion as of June 2021.

Its deposits grew from Rs 5.95 trillion in June 2020 per cent to Rs 6.23 trillion in June 2021.

The capital adequacy ratio stood at 15.07 per cent in June 2021 up from 12.76 per cent at the end of June 2021.

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Bank of India posts Rs 250 crore profit in Q4


State-owned Bank of India has on Friday reported Rs 250 crore profit for the March quarter compared to a loss of Rs 3571 crore in the year ago period, thanks to lower provisions against bad loans.

The bank's net interest margin, a key profitability parameter, has fallen to 2.01% for the quarter as against 2.90%.


Operating profit dipped 21% at Rs 2094 crore from Rs 2653 crore while interest income fell 9% at Rs 9327 crore over the year-ago period's Rs 10,528 crore, the bank said in a regulatory filing.

About 4.5 times lower provisions including those to cover bad loans saved the day for the bank. The bank made provisions of Rs 1831 crore during the quarter against Rs 8142 crore last time with improvement in asset quality over the one year period. Gross non-performing assets ratio stood at 13.77% at the end of March, compared with 14.78% a year back. The ratio however rose from December 2020's 13.25%.

Provisions coverage ratio however remained healthy at 86.24% compared with 83.75% over the same period.

The bank's advances shrunk 1.5% to Rs 4.1 lakh crore as of end of March, on account of contraction in overseas lending to Rs 48,075 crore from Rs 58,852 crore while dometic lending grew a modest 1.35 to Rs 3.6 lakh crore. The muted credit growth is largely due to 15% fall in corporate loan demand.

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Government is considering mid-sized to small banks for its first round of privatisation.


Government has shortlisted four mid-sized state-run banks for privatization, under a new push to sell state assets and shore up government revenues, three government sources said.


Privatisation of the banking sector, which is dominated by state-run behemoths with hundreds of thousands of employees, is politically risky because it could put jobs at risk but Prime Minister Narendra Modi's administration aims to make a start with second-tier banks.


The four banks on the shortlist are Bank of Maharashtra, Bank of India, Indian Overseas Bank and the Central Bank of India, two officials told Reuters on condition of anonymity as the matter is not yet public.


Two of those banks will be selected for sale in the 2021/2022 financial year which begins in April, the officials said. The shortlist has not previously been reported.


The government is considering mid-sized to small banks for its first round of privatisation to test the waters. In the coming years it could also look at some of the country's bigger banks, the officials said.


The government, however, will continue to hold a majority stake in India's largest lender State Bank of India, which is seen as a 'strategic bank' for implementing initiatives such as expanding rural credit.


A finance ministry spokesman declined to comment on the matter.


India's deepest economic contraction on record caused by the pandemic is driving the push for bolder reforms, economists say.


Government also wants to overhaul a banking sector reeling under a heavy load of non-performing assets, which are likely to rise further once banks are allowed to categorise loans that soured during the pandemic as bad.


PM Modi's office initially wanted four banks to be put up for sale in the coming fiscal year, but officials have advised caution fearing resistance from unions representing the employees.

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Bank of India(BoI) Q3 results: Net profit jumps 412%

 


State-owned Bank of India on Wednesday reported a more than five-fold jump in standalone net profit to Rs 540.72 crore for the quarter ended in December. The bank had registered a net profit of Rs 105.52 crore in the year-ago period.

However, total income during the third quarter of financial year 2020-21 was down at Rs 12,310.92 crore as against Rs 13,338.09 crore in the same quarter of the previous year, Bank of India said in a regulatory filing.

On a consolidated basis, the bank posted a net profit of Rs 610.37 crore, up by more than four times as against Rs 138.20 crore in the year-ago period. Income was down at Rs 12,372.88 crore as against Rs 13,430.53 crore.

On the asset front, gross bad loans or non-performing assets (NPA) fell to 13.25 percent of gross advances at the end of December 2020 as against 16.30 percent in the year-ago period. In value terms, gross NPAs were Rs 54,997.03 crore, lower than Rs 61,730.54 crore.

Likewise, the net NPA was trimmed to 2.46 percent (Rs 9,077.32 crore) from 5.97 percent (Rs 20,113.34 crore).

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Another Privatisation news- Two of these three banks are likely privatisation candidates


The market is betting on Punjab & Sind Bank, Bank of Maharashtra and Bank of India as the likely candidates for the finance minister’s ambitious bank privatisation plan. In her Budget speech, finance minister Nirmala Sitharaman said the government planned to privatise two sate-run banks, other than IDBI Bank. Analysts believe that the likely candidates will be from the pool of banks which were not part of the merger process. The government had earlier allowed merger of 13 banks into five banks.

Anil Gupta – vice-president and sector head, financial sector ratings, ICRA, said Punjab and Sind Bank and Bank of Maharashtra looked probable candidates for privitisation. Of the six banks kept out of merger, Indian Overseas Bank, Central Bank and UCO Bank are under PCA (prompt-corrective action), he explained. The Reserve Bank of India had kept the three banks in the PCA framework after a massive asset quality deterioration, losses in the books and lower capital levels. Gupta said PCA banks were unlikely to be offered for privatisation due to poor investor demand.

Leaving State Bank of India and five merged banks, there are six public sector banks in the banking system. The six banks include Bank of India, Punjab and Sind Bank, Bank of Maharashtra, Indian Overseas Bank (IoB), Central Bank of India and Uco Bank. Gupta also said the government was unlikely to consider privitisation of Bank of India due its large size. “The government may want to test the water with smaller banks first,” he added.

According to JM Financial, “While the details are awaited, we believe the most likely candidates will be from the pool of banks which were not part of consolidation. While these candidates are small and are not expected to provide any material resources to the government, we believe that this is a step in the right direction and can act as a test case for privatisation of other major public sector banks in future.”

In a note to its clients, Kotak Institutional Equities said the task of privatising two PSU banks may be difficult to achieve but could result in more privatisations, if successful. Lack of interest among potential buyers remains a key concern given the structure of these banks, Kotak said.

In an interview with CNN News 18, Niramala Sitharaman said the government wanted more public sector banks which are functionally strong, professionally managed and can meet the demands of growing aspirational India. “If I am going to be sitting around with such public sector banks which are just not in a mood or a position to stand up, is it right to pour tax-payers money into such banks? When there may be buyers who can buy and run it efficiently,” she said.

The government has proposed to introduce required legislative amendments for privatisation of two PSBs in the Budget session itself.

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