Bank of India (BANKINDIA) Q4 20/21 earnings summary

Executive summary

• FY21 net profit was ₹2,160 crore, versus a ₹2,957 crore net loss in FY20; lower provisions and higher non-interest income supported the turnaround.

• Global business grew 6.74% YoY to ₹1,037,549 crore; deposits rose to ₹627,114 crore while gross advances were ₹410,436 crore at March 2021.

Financial highlights

• Net interest income fell 6.47% YoY to ₹14,270 crore; non-interest income rose 10.85% to ₹7,441 crore.

• Operating profit declined 5.61% to ₹10,872 crore; provisions and contingencies fell 39.82% to ₹8,712 crore.

• Standalone EPS was ₹6.59 versus a loss of ₹9.10 in FY20; book value per share rose to ₹84.24 from ₹65.43.

• Domestic deposits grew 14.22% to ₹551,135 crore; domestic gross advances rose 1.31% to ₹362,361 crore.

Outlook and guidance

• Priorities include expanding retail, agriculture and MSME lending, sourcing low-cost CASA deposits, improving asset quality and margins, reducing costs, and using technology to support cross-selling and customer service.

• Finacle 10 migration was in an advanced stage, with rollout planned during FY22; end-to-end digital processing for retail, agriculture and MSME lending was progressing.