“We expect corporate loan growth to be slow and steady so the focus like last year will be on retail loan growth. We are expecting loan growth of 10-11% this year," said Sanjiv Chadha, managing director and chief executive officer, BoB.
During the March quarter BoB reported 8.9% year-on-year growth in loan book driven by 21% growth in foreign loans and 16.8% growth in the retail segment.
On Friday the bank reported a net profit of ₹1,779 crore for the year ended March 2022 owing to strong growth in core income and lower provisions. This compares with a loss of ₹1,046 crore in FY21.
Core income or net interest income grew 21% to ₹8,612 crore in the fourth quarter as compared to ₹7,107 crore in the corresponding quarter last year. Margins declined by 7 basis points to 3.14% at the end of March compared to 3.21% at the end of December.
Other income growth was down 72% on-year to ₹2,522 crore, mainly because of a sharp decline in treasury income and base effect of higher recoveries. Fee based income however grew 6% to ₹1,848 crore.
