State-owned Bank of India (BoI) reported a standalone profit after tax of Rs. 250 crores for March quarter 2020-21 as bad loans shrunk. The lender had incurred a standalone loss of Rs. 3,571 crores in the year-ago period. For financial year 2020-21, net profit stood at Rs. 2,160 crores as against net loss of Rs. 2,957 crores in the previous year.

A K Das, Managing Director and CEO, said: “During the year, the gross and net non-performing assets (NPAs) showed improvement both in quantum and percentage”. Gross NPA ratio improved to 13.77 per cent from 14.78 per cent. Net NPAs stood at 3.35 per cent as against 3.88 per cent.

“By March 2022, we will aim to bring down our GNPA ratio by 2-2.5 percentage points to around 12 per cent,” he said.

Net interest income (NII) declined 22.60 per cent to Rs. 2,936 crores in the quarter as against Rs. 3,793 crores in the year-ago period. Domestic net interest margins (NIM) declined to 2.16 per cent from 3.18 per cent.

He attributed the lower NIM to a fall in yield on advances, which was more than the fall in the bank’s cost of deposits, and to muted growth in domestic advances. He expects NIM to improve to 2.5 per cent in 2021-22.

BoI’s recovery during the fourth quarter was Rs. 975 crores and upgradation at Rs. 109 crores. Fresh slippages were to the tune of Rs. 7,368 crores in the quarter under review. Provision coverage ratio improved to 86.24 per cent from 83.74 per cent a year ago. Total provisions declined 70.37 per cent to Rs. 1,844 crores in the quarter under review. Provisions on bad loans also fell 58 per cent to Rs. 3,089 crores.

The Capital Adequacy Ratio improved to 14.93 per cent in March 2021 from 13.10 per cent in March 2020. The common equity tier (CET-1) ratio stood at 11.51 per cent. The lender”s domestic advances grew 1.31 per cent to Rs. 3,62,361 crores and deposits rose 14.22 per cent to Rs. 5,51,135 crores. The bank expects 5-6 per cent credit growth in 2021-22, Das added.

Bank of India stock closed at Rs. 82.30, up 2.62 per cent on BSE.