On liabilities side, Bank of India’s domestic deposits grew 2.5% on year to Rs 5,45,734 crore.

Bank of India (BoI) on Tuesday reported a nearly 100% year-on-year rise in net profit in the September quarter to Rs.1,051 crore on the back of lower provisions and higher other income.

The lender’s total provisions before tax fell 56.3% year on year (YoY) to Rs 894 crore in the July-September period.

Lower provisions were on account of improving asset quality. As on September 30, the lender’s gross non-performing assets (NPAs) stood at Rs 50,270 crore, lower than Rs 56,232 crore a year ago. The bank saw fresh slippages of Rs 1,307 crore in the reporting quarter — lower than Rs 3,942 crore in the previous quarter.

In a post earnings conference on Tuesday, the bank’s management said it had created 50% provision for its Rs 1,024-crore direct exposure to SREI group companies, whose boards were recently superseded by the Reserve Bank of India.

In percentage terms, BoI’s gross and net bad loan ratios improved to 12% and 2.79%, respectively, as on September-end from 13.51% and 3.35% as on June 30, respectively.

Going forward, the bank aims to lower the gross NPA ratio below 10% and the net NPA ratio by around 2%, said MD and CEO Atanu Kumar Das.

The bank’s net interest income (NII) stood at Rs 3,523 crore in the reporting quarter, lower by 14.3% on year. The domestic net interest margin (NIM) in July-September was 2.65%, lower than 2.88% a year ago. The capital adequacy ratio (CAR), as on September 30, stood at 17.05%, of which Tier I ratio was 13.88% and Tier II ratio stood at 3.17%.

As on September 30, Bank of India’s provision coverage ratio stood at 87.81%, while credit cost was 0.26%. Other income, that includes fees from third-party, rose 37% on a yearly basis to Rs 2136.28 crore.

The lender’s global advances increased 2.7% YoY to Rs 4,18,895 crore. Of these, domestic loans stood at Rs 3,68,573 crore, higher by 1.6% on year. Retail, agriculture and micro, small and medium enterprises loans formed 54% of the lender’s domestic loan book.

“There will be acceleration in advances going forward through a series of outreach campaigns, which we have conducted for the last two months and which we will continue in the coming months. We expect our overall advances to grow by 6-7% during the year,” Das said.

On liabilities side, Bank of India’s domestic deposits grew 2.5% on year to Rs 5,45,734 crore.