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Bank of India has reported 10% growth in net profit at Rs 1702.73 crore
for the quarter ended June 2024 (Q1FY2025). The bank has recorded 6% growth in
net interest income (NII), while the core fee income of the bank rose 4% in
Q1FY2025. The Net Interest Margin (NIM) of the bank improved to 3.07% in
Q1FY2025 compared to 3.03% in the corresponding quarter of previous year.
On business front, the
bank as has posted 12% growth in business with strong 16% surge in loan book. The
asset quality of the bank was stable in Q1FY2025. Bank has witnessed increase
in the credit to deposit ratio to 78.5% at end June 2024 from 74.4% at end June
2023. CASA ratio of the bank has declined to 42.7% at end June 2024 from 44.7% at
end June 2023.
Asset quality improves: The bank has further
improved asset quality in Q1FY2025.
The fresh slippages of
loans declined to Rs 1930 crore in Q1FY2025 compared with 2038 crore in
previous quarter and Rs 2549 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 1201 crore, upgradations at Rs 884 crore and the write-off of loans
were at Rs 1312 crore in Q1FY2025.
The standard
restructured loan book of the bank declined to Rs 6398 crore end June 2024.
Provision coverage ratio
improved to 92.11% at end June 2024 compared to 90.59% a quarter ago and 89.52%
a year ago.
The capital adequacy
ratio of the bank stood at 16.2% with Tier I ratio at 14.3% at end June 2024.
The risk weighted assets
of the bank has increased 16% YoY to Rs 425610 crore end June 2024,
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Asset Quality
Indicators: Bank of India
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Jun-24
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Mar-24
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Dec-23
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Sep-23
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Jun-23
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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27715.76
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29182.77
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30237.15
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31718.78
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34582.01
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-5
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-20
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Net NPA (Rs Crore)
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5701.83
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6845.25
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7627.16
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7978.26
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8118.68
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-17
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-30
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% Gross NPA
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4.62
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4.98
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5.35
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5.84
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6.67
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-36
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-205
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% Net NPA
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0.99
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1.22
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1.41
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1.54
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1.65
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-23
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-66
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% PCR
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92.11
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90.59
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89.95
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89.58
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89.52
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152
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259
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% CRAR - Basel III
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16.18
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16.96
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16.06
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15.63
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15.60
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-78
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58
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% CRAR - Tier I -
Basel III
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14.29
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15.62
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13.88
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13.35
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13.80
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-133
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49
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Healthy business growth:
The business of the bank
has increased 12% YoY to Rs 1364661 crore end June 2024, driven by 16% surge in
advances to Rs 600264 crore. Deposits rose 10% to Rs 764397 crore at end June
2024.
CASA deposits ratio
declines: The
CASA deposits of the bank rose 6% YoY to Rs 274973 crore at end June 2024. The
CASA ratio declined to 42.7% at end June 2024 compared to 44.7% at end June
2023, while declined from 43.2% a quarter ago. The term deposits have increased
13% to Rs 372944 crore end June 2024. Overseas deposits have increased 9% to Rs
116479 crore end June 2024.
Strong loan growth: Advances growth was
driven by retail loans rising 20% YoY to Rs 115183 crore at end June 2024, while
credit to agriculture increased 22% to Rs 88977 crore and MSME 13% to Rs 80486 crore
at end June 2024. The corporate credit has moved up 15% to Rs 223523 crore end
June 2024. The overseas credit rose 8% to Rs 92095 crore end June 2024.
Investment book of the bank increased 15% YoY to Rs 233357 crore at end June
2024. The SLR book moved up 18% to Rs 190251 crore, while non SLR book rose 1% to
Rs 42836 crore at end June 2024. The AFS book dipped 34% to Rs 31618 crore, while
HTM book rose 8% to Rs 166674 crore at end June 2024. The duration of the AFS investment
portfolio stood at 2.54 years end June 2024 compared with 1.55 years at end
June 2023.
Margins improve: The bank has showed 60 bps
YoY jump in cost of deposits to 4.82%, while yield on advances increased 50 bps
YoY to 8.60% in Q1FY2025. Thus, the NIM has improved 4 bps YoY, while rose 15 bps
qoq to 3.07%
Branch expansion: The bank has added 7 branches
and 4 ATMs in Q1FY2025, taking overall tally to 5177 branches and 8234 ATM`s
end June 2024.
Book value of the bank stood at Rs 136.6
per share at end June 2024, while the adjusted book value (net of NNPA and 25%
of restructured advances) was Rs 120.5 per share at end June 2024.
Quarterly Performance
NII rise marginally: Bank has recorded 18% increase
in the interest earned at Rs 16938.02 crore, while interest expenses increased 26%
to Rs 10662.21 crore in Q1FY2025. NII improved 6% to Rs 6275.81 crore in the
quarter ended June 2024.
Moderate growth in core
fee income: Bank has posted strong 4% growth in core fee income to Rs 369 crore,
while the recoveries and other income moved up 10% to Rs 202 crore. However,
the other non-interest income declined 24% to Rs 702 crore, causing 11% dip in
the overall non-interest income to Rs 1302 crore in the quarter ended June
2024.
Expenses ratio rises: The operating expenses
of the bank increased 8% to Rs 3900.50 crore, as other expenses moved up 14% to
Rs 1555.71 crore, while employee expenses increased 4% to Rs 2344.79 crore in
Q1FY2025. Cost to income ratio rose to 51.5% in Q1FY2025 compared with 49.1% in
Q1FY2024, causing 2% decline in the Operating Profit to Rs 3677.31 crore.
Provisions and
contingencies jump: The bank has showed 57% decline in provisions to Rs 1293.26 crore.
The loan loss provisions increased 56% to Rs 1216 crore, while investment
provisions and standard asset provisions jumped 223% to Rs 359 crore. The bank
has written back investment provisions of Rs 292 crore in Q1FY2025.
Effective tax rate declined to 28.6% in Q1FY2025 from 47.0% in Q1FY2024. Net Profit rose by 10% YoY
to Rs 1702.73 crore during quarter ended June 2024.
Financial Performance
FY2024:
Bank has posted 57%
increase in net profit to Rs 6317.92 crore in the year ended March 2024
(FY2024). The net interest income increased 14% to Rs 23052.92 crore, while
non-interest income fell 14% to Rs 6094.85 crore, pushing up net total income
by 6% to Rs 29147.77 crore in FY2024. The operating expenses increased 8% to Rs
15079.16 crore, while provision and contingencies dipped 45% to Rs 3969.54
crore, allowing profit before tax to increase 62% to Rs 10099.07 crore in
FY2024. The cost-to-income ratio rose to 51.7% in FY2024 compared to 51.1% in FY2023.
An effective tax rate increased to 37.4% in FY2024 compared to 35.4% in FY2023.
The net profit has increased 57% to Rs 6317.92 crore in FY2024.
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Bank of India: Results
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Particulars
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2406 (3)
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2306 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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16938.02
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14358.63
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18
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60709.49
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47647.72
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27
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Interest Expended
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10662.21
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8444.60
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26
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37656.57
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27372.82
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38
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Net Interest Income
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6275.81
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5914.03
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6
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23052.92
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20274.90
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14
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Other Income
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1302.00
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1462.45
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-11
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6094.85
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7099.89
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-14
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Net Total Income
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7577.81
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7376.48
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3
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29147.77
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27374.79
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6
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Operating Expenses
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3900.50
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3624.53
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8
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15079.16
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13982.17
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8
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Operating Profits
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3677.31
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3751.95
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-2
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14068.61
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13392.62
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5
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Provisions &
Contingencies
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1293.26
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824.16
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57
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3969.54
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7163.31
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-45
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Profit Before Tax
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2384.05
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2927.79
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-19
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10099.07
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6229.31
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62
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EO
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0.00
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0.00
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-
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0.00
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0.00
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-
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PBT after EO
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2384.05
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2927.79
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-19
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10099.07
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6229.31
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62
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Provision for tax
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681.32
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1376.72
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-51
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3781.15
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2206.37
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71
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PAT
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1702.73
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1551.07
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10
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6317.92
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4022.94
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57
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EPS*(Rs)
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15.0
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13.6
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13.9
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8.8
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Adj BV (Rs)
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120.5
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104.7
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117.3
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100.9
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* Annualized on current equity of
Rs 4552.67 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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