The public sector lender, Bank of India's net profit down by 21 per cent to Rs 757 crore in the fourth quarter of FY13 which ended on March 31, 2013.
The bank's profitability was weighed down due to higher provisioning and lower margins. There is decline in net profit despite of a prudential write-back of Rs 192 crore on account of taxation.
Net interest Margin declined marginally to Rs 2476 crore. Provisioning towards bad loans doubled to Rs 1089 crore during the fourth quarter.
Net Interest Margin also declined to 2.46 per cent. Mrs. Vijayalakshmi R. Iyer, Chairman and Managing Director of BOI said, "The bank expects NIM to improve to about 3.10 per cent on the back of lower cost of deposits and improvement in international margins to about 1.20 per cent".
Net profit for financial year 2012-13 nudged up only by three per cent to Rs 2749 crore against Rs 2677 crore in FY12.
Gross non-performing assets (NPAs) ratio increased to 2.99 per cent from 2.34 per cent in March quarter of FY12. For Bank of India, NPA levels have peaked, said Mrs. Iyer.
The bank restructured loans worth Rs 2,159 crore in Q4 FY13. "Restructuring in the June quarter this fiscal is expected to be about Rs 515 crore. Going forward, stress in the loan portfolio will be lower," Iyer said.