State-owned advances expected to grow by 10-12 per cent in the current fiscal corporate debt yet to take, the top official said in a call from analysts. Bank’s Year-to-Year (YTD) Loans growth nearly 5 per cent driven primarily by retail sector advances, agriculture and MSME Loans (to hit).

“Advance growth guidance will be in the range of 10 to 12 per cent for the full year. So far till June, we had YTD growth of around 5 per cent, but that is mostly due to good RAM growth. Corporate is we believe that this quarter There may be some movement in the corporate book since FY23,” AK Das, Managing Director and Chief Executive Officer (MD & CEO) told analysts in the FY23 Q1 Earnings Conference Call.

Bank’s Gross Advances (Global and domestic4,77,746 crore at the end of June 2022.

In the first quarter ended June of the current financial year, the lender registered Downfall Net profit up 22 per cent to Rs 561 crore as against Rs 720 crore in the year-ago quarter.

Convinced that it won’t be difficult to achieve credit growth target For 2022-23, Das said the bank expects a net interest margin (NIM) of 2.90 per cent domestically and 2.75 per cent global NIM.

In Q1FY23, the bank’s domestic and global NIMs stood at 2.88 per cent and 2.55 per cent, respectively.

Das said there is a lot of revaluation taking place in the loan book on both sides and it would be good if the bank could maintain guidance on its NIMs. In terms of asset quality, the bank said it has set a target of Rs 2,500 crore reduction in bad loans every quarter.

Of this, Rs 1,700 crore will come from upgradation and cash recovery and the rest through various OTS (One Time Settlement) programs that the lender has already prepared, M Karthikeyan, executive director, said.

“We are sure that during this year, around Rs 3,000 crore will come through proposals NCLTThat is our guidance,” he said.

At the end of June 2022, the bank’s gross non-performing assets (NPA) improved to 9.30 per cent of gross advances to Rs 44,415 crore. It stood at 13.51 per cent (Rs 56,042 crore) at the end of June 2021.

Similarly, net NPAs fell to 2.21 per cent (Rs 9,775 crore) as against 3.35 per cent (Rs 12,424 crore).

The latest slippage during the quarter declined to Rs 2,465 crore from Rs 3,528 crore a year ago.

For the full year, Bank of India expects slippages to not exceed Rs 8,000 crore. In addition, cash recovery of Rs 1,219 crore, upgradation of Rs 465 crore and write-off of Rs 2,340 crore took the total shortfall to Rs 4,024 crore in the June quarter.