Bank of India (BANKINDIA) Q4 19/20 earnings summary

Executive summary

• FY20 operating profit rose 42.34% to ₹11,519 crore; net loss narrowed to ₹2,957 crore from ₹5,547 crore, with elevated provisions remaining the main drag.

• Global business grew 7.56% to ₹9,72,026 crore; deposits increased 11.2% and advances 7.0%, both outpacing system growth.

• Asset-quality ratios improved and NIM expanded, while capital adequacy declined to 13.10% from 14.19%.

Financial highlights

• Net interest income rose 11.71% to ₹15,257 crore; non-interest income increased 44.09% to ₹6,713 crore.

• Operating expenses fell 2.30% to ₹10,451 crore; provisions and contingencies rose 6.13% to ₹14,476 crore.

• Interest earned was ₹42,353 crore versus ₹40,768 crore; total income was ₹49,066 crore versus ₹45,427 crore.

• Net loss improved to ₹2,957 crore from ₹5,547 crore; EPS was -₹9.10 versus -₹29.79.

Outlook and guidance

• FY21 plans prioritize growth in retail, agriculture and MSME lending, CASA funding, asset quality, cross-selling, cost control and stronger risk management.

• Finacle 7-to-10 upgrade, early-warning monitoring and enterprise fraud-risk tools were in progress, with the core-platform rollout planned for FY21.

• Agricultural, retail and SME credit-processing centres were set to expand in FY21; technology upgrades and digitized loan processing were also priorities.