• BOB reported a net loss of INR14.01b in 3QFY20 led by higher provisions and elevated slippages as it addressed the RBI divergence and recognized select large corporate accounts as Non-Performing Loans (including DHFL).
• NII increased 9% YoY aided by improvement in cost of deposits (+16bp QoQ). However, global Net Interest Margins were largely flat at 2.80% while for domestic declined 7bp QoQ, mainly due to marginal cost of funds based lending rate (MCLR) rate cut (15bp QoQ). Pre-provision operating profit (PPOP) grew at 8.5% YoY.
• Loan growth was muted at 2.7% YoY , retail loan growth came in at 15.3%. Within retail, home/auto loans grew 10%/43% YoY. Deposits grew 1% YoY to INR9.0t. Domestic CASA grew 8.8% YoY.
• RBI divergence of INR45.1b, leading to an annualized slippage ratio of 7.4%. Overall, GNPA/NNPA ratio increased 18bp/14bp QoQ to 10.4%/4.1%.
• The bank has a strong INR200b sanctioned project pipeline. It expects disbursement trends to improve in corporate lending.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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