BANK OF INDIA ANNOUNCES MARCH 2019 (Q4 & FY 2018-19) FINANCIAL RESULTS

Mumbai, May 16, 2019 : Bank of India announced its audited results for the Q4 and FY 2018-19, following approval by its Board of Directors on May 16, 2019.

BUSINESS:

• Global Business of the Bank stood at Rs.9,03,722 crore as on March 31, 2019 against Rs. 8,96,850 crore as on March 31, 2018 with a growth of 0.77 %.The domestic business growth has been 4.93% whereas the international business  witnessed a de-growth of 15.56% as a Bank’s strategic decision to rationalise its overseas exposure.
• The ratio of CASA improved from 41.43% in March, 2018 to 43.36% in March, 2019. The CASA level has improved from Rs. 172,787 crore in March, 2018 to Rs. 1,81,765 crore in March, 2019 as a result of various initiatives taken by the Bank.
• The Gross Advances (Global) stood at Rs. 3,82,860 crore as on March 31, 2019 against Rs. 3,75,995 crore as on March 31,2018, with a YoY growth of 1.83%.
• The Domestic Gross Advances increased by 11.80% from Rs 2,93,500 crore  as on March 31, 2018 to Rs.3,28,137 crore as on March 31, 2019.
• Retail Advances posted a substantial 18.14% growth to reach Rs.56,492 crore in March 2019 from Rs. 47,817 crore in March 2018.
• Priority Sector advances stood at Rs.1,30,524 crore (7.26% growth y-o-y) which constitutes 42.94% of ANBC. Agriculture advances were Rs.57,327 crore forming 18.86% of ANBC. Both the sectoral advances were above the regulatory requirement.

ASSET QUALITY:

• The Gross NPAs declined consistently since September,2018. During the year FY 2018-19, Gross NPAs reduced by Rs. 1,667 crore from Rs. 62,328 crore in March 18 to Rs. 60,661 crore in March 2019. Similarly, the Net NPAs reduced from Rs.28,207 crore in March, 2018 to Rs.19,119 crore in March, 2019.

• The Gross NPA ratio improved from 16.58% in March, 2018 to 16.31% in December, 2018 and further to 15.84% in March, 2019. Similarly, the net NPA ratio declined from 8.26 % in March, 2018 to 5.87% in December 2018 and further to 5.61% in March, 2019.

• Provision Coverage Ratio improved from 65.85% in March 2018 to 76.95% in March 2019.

• The Recovery and up-gradation during the year 2018-19 almost doubled from Rs. 6,251 crore during FY 2017-18 to Rs. 12,154 crore during FY2018-19.

PROFIT – Q4 FY 2018-19:

• The Bank’s Operating Profit jumped by 96.50% from Rs. 1172 crore in Q4 FY 2017-18 to Rs. 2303 crore in Q4 FY 2018-19.
• The Bank posted a Net Profit of Rs. 252 crore in Q4 FY 2018-19 as against        (-) Rs. 3,969 crore during Q4 2017-18.
• Net Interest Income went up by 57.72% from Rs. 2,564 crore in Q4 FY2017-18 to Rs. 4,044 crore in Q4 FY 2018-19 on account of both rise in the Yield on Advances and drop in the cost of deposits.
• The Non-Interest Income of the Bank increased by 16.58% YoY from Rs. 1,375 crore in March 2018 to 1,603 crore in March 2019, supported by  profit from sale of investment and recovery in written-off accounts.
• The NIM (Global) of the Bank has increased from 1.65% in Q4 FY 2017-18 to 2.93% in Q4 FY 2018-19, with a rise of 128 bps. Domestic NIM went up substantially from 1.92 % to 3.38%, with an increase of 146 bps.
• The Yield on Advances improved significantly from 6.74% in March 2018 to 8.63% in March 2019 i.e. by 189 bps. Yield on Advances also increased sequentially with respect to quarter ended December 2018. The domestic yield on Advances rose from 7.95% in March 2018 to 9.36% in March 2019.
• The domestic Cost of Deposits brought down from 5.31% in Q4 FY2017-18 to 5.15% in Q4 FY2018-19

PROFIT – FY 2018-19:

• The Bank’s Operating Profit rose by 13.35% from Rs. 7,139 crore in FY 2017-18 to Rs. 8,092 crore in FY 2018-19.
• The Bank’s Net Profit for the year 2018-19 stood at (-) Rs. 5,547 crore as against (-) Rs. 6,044 crore in FY 2017-18.
• The NII of the Bank rose by 29.99% from Rs.10,506 crore in FY 2017-18 to Rs.13,658 crore for FY 2018-19.
• The yield on advances increased from 7.15% in March 2018 to 8.23% in March 2019 with a rise of 108 bps.
• The cost of deposits declined from 4.58% in March 2018 to 4.50% in March 2019. The domestic cost of deposit declined by 31 bps from 5.52% to 5.21% during the same period.
• The NIM (global) went up from 1.92% in March’18 to 2.56% in March’19, with an increase of 64 bps. The NIM (domestic) increased from 2.31% in March’18 to 3.03% in March’19, i.e. by 72 bps.

CAPITAL ADEQUACY:

• The CRAR (Basel III) improved to 14.19% in March 31, 2019 against 12.47% in December 2018 and 12.94% in March, 2018, supported by capital infusion by the Government of India & ESPS.

• The CET-1 ratio went up to 11.01% in March 2019 from 9.10% in December, 2018 and 7.87% in March 2018. The Tier-I Capital ratio also improved to 11.07% from 9.24% in December 2018 and 9.73% in March 2018.

• The Risk Weighted Assets reduced from Rs. 3,17,546 crore in March 2018 to Rs. 3,05,953 crore in March 2019, with a reduction of Rs. 11,593 crore i.e. 3.65%

INITIATIVES

v  Mission Samadhan: A non-discriminatory & non-discretionary OTS Scheme formulated for quick resolution of NPAs.

v  “War Room” and “Watch room” formed in each Zone for Recovery, NPA reduction and credit monitoring/trigger management.

v  Tech-driven Credit Monitoring System for tracking of ‘Early Warning Signals’ under implementation.

v  “Enterprise wide Fraud Risk Management” framework initiated for real-time fraud monitoring.

v  Centralised processing centres: New 11 RBCs and 28 new SME City Centres opened and separate Gold Loan cells formed in all Zones within the existing infrastructure to increase RAM business.

v  On boarded the Contactless Platform (psbloansin59minutes.com)

v  Launched GST based Financing to MSME Borrowers.

v  Actively participating in the Udyami Mitra Portal – marketplace for new MSME loans.

v  Digi Branches: 255 Select Branches converted to Digi Branches for meeting the demands of Next Gen Customers.

v  Star Mahashakti- Up gradation of IT platform from FINACLE 7 to FINACLE 10.

AWARDS – 2018-19

v  Bank of India ranked as the 2^nd Most Trusted Brand among the PSU Bank category in March 2019 declared by the Economic Times for the year 2018.

v   Bank has been conferred Second Position among PSU Banks for performance under Sukanya Samriddhi by the National Savings Institute (Ministry of Finance) for the year 2017-18

v  Bank of India awarded as “Best Performer in Currency Derivative Segment” amongst all Banks’ Category by BSE for FY 2017-18.

v  “India’s Top Organisation with Innovative HR Practices” award in PSUs by the Asia Pacific HRM Congress for 2017-18.

v  Bank of India awarded APY- Makers of Excellence Award by PFRDA for enrolment in APY in November,2018.