How did Bank of India report doubling of profits despite lower revenues in the Sep-21 quarter?
Answer
Answer
For the Sep-21 quarter, Bank of India reported -3.71% fall in its total revenues at Rs.11,758 crore. However, net profits were higher by 97.4% at Rs.1,073 crore. Revenues from retail banking and treasury were higher while revenues from wholesale banking was lower on a yoy basis. During the quarter, Bank of India raised Rs2,550 crore via QIP placement.
The real boost to the profit surge for Bank of India came from lower provisions. The provisions for asset quality stood at Rs.897 crore in the Sep-21 quarter as compared to a much higher Rs.2,047 crore in the Sep-20 quarter. Gross NPAs were lower at 12% while net NPAs were also lower at 2.79%.