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Bank of India has reported 63% growth in net profit at Rs 2373.69 crore
for the quarter ended September 2024 (Q2FY2025). The bank has posted 4% growth
in net interest income (NII), while the core fee income of the bank improved 9%
in Q2FY2025. The Net Interest Margin (NIM) of the bank dipped to 2.82% in
Q2FY2025 compared to 3.08% in the corresponding quarter of previous year.
On business front, the
bank as has posted 12% growth in business with strong 15% surge in loan book.
The asset quality of the bank has improved in Q2FY2025. Bank has raised the
credit to deposit ratio to 80.2% at end September 2024 from 77.2% at end
September 2023. However, the CASA ratio of the bank has declined to 41.2% at
end September 2024 from 43.1% at end September 2023.
Asset quality improves: The bank has improved asset
quality in Q2FY2025.
The fresh slippages of
loans stood at Rs 2546 crore in Q2FY2025 compared with 1930 crore in previous
quarter and Rs 1650 crore in the corresponding quarter last year.
The recoveries of NPAs stood
at Rs 1523 crore, upgradations at Rs 246 crore and the write-off of loans was
at Rs 1037 crore in Q2FY2025.
Provision coverage ratio
rose to 92.22% at end September 2024 compared to 92.11% a quarter ago and
89.58% a year ago.
The capital adequacy ratio
of the bank stood at 16.6% with Tier I ratio at 14.2% at end September 2024.
The risk weighted assets
of the bank has increased 14% YoY to Rs 432908 crore end September 2024,
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Asset Quality
Indicators: Bank of India
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Sep-24
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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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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
|
27455.33
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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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-1
|
-6
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-13
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Net NPA (Rs Crore)
|
5647.92
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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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-1
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-17
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-29
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% Gross NPA
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4.41
|
4.62
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4.98
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5.35
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5.84
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-21
|
-57
|
-143
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% Net NPA
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0.94
|
0.99
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1.22
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1.41
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1.54
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-5
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-28
|
-60
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% PCR
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92.22
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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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11
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163
|
264
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% CRAR - Basel III
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16.63
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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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45
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-33
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100
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% CRAR - Tier I -
Basel III
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14.18
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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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-11
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-144
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83
|
|
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 1397100 crore end September 2024, driven by 15%
surge in advances to Rs 621919 crore. Deposits rose 10% to Rs 775181 crore at
end September 2024.
CASA deposits ratio
declines: The
CASA deposits of the bank increased 5% YoY at end September 2024. The CASA
ratio declined to 41.2% at end September 2024 compared to 43.1% at end
September 2023, while declined from 42.7% a quarter ago. The term deposits have
increased 14% to Rs 455961 crore end September 2024. Overseas deposits have declined
2% to Rs 102449 crore end September 2024.
Strong retail loan
growth: Advances
growth was driven by retail loans rising 21% YoY to Rs 121517 crore at end
September 2024, while credit to agriculture increased 21% to Rs 93798 crore and
MSME 15% to Rs 85097 crore at end September 2024. The corporate credit has moved
up 9% to Rs 220241 crore end September 2024. The overseas credit has increased 12%
to Rs 101266 crore end September 2024.
Investment book of the bank jumped 26% YoY to Rs 260488 crore at end September
2024. The SLR book moved up 32% to Rs 215733 crore, while non SLR book rose 2%
to Rs 44755 crore at end September 2024. The AFS book dipped 39% to Rs 28861
crore, while HTM book rose 16% to Rs 182805 crore at end September 2024. The
duration of the AFS investment portfolio stood at 2.01 years end September 2024
compared with 2.87 years at end September 2023.
Margins dip: The bank has showed 46
bps YoY jump in cost of deposits to 4.95%, while yield on advances declined 9
bps YoY to 8.45% in Q2FY2025. Thus, the NIM has declined 26 bps YoY, while dipped
25 bps qoq to 2.82%
Branch expansion: The bank has added 36
branches and 1 ATMs in Q2FY2025, taking overall tally to 5213 branches and 8235
ATM`s end September 2024.
Book value of the bank stood at Rs
142.7 per share at end September 2024, while the adjusted book value (net of
NNPA and 25% of restructured advances) was Rs 127.2 per share at end September
2024.
Quarterly Performance
NII growth moderates as NIM
declines: Bank
has recorded 16% increase in the interest earned at Rs 17354.55 crore, while
interest expenses increased 23% to Rs 11369.44 crore in Q2FY2025. NII improved
4% to Rs 5985.11 crore in the quarter ended September 2024.
Treasury income spurts: Bank has posted strong
9% growth in core fee income to Rs 525 crore, while the recoveries and other
income rose 10% to Rs 685 crore. Further, the treasury income zoomed 801% to Rs
730 crore, leading to 49% surge in the overall non-interest income to Rs
2517.65 crore in the quarter ended September 2024. The forex income declined 33%
to Rs 72 crore in Q2FY25.
Expenses ratio rises: The operating expenses
of the bank increased 19% to Rs 4355.36 crore, as other expenses moved up 15%
to Rs 1724.09 crore, while employee expenses increased 21% to Rs 2631.27 crore
in Q2FY2025. Cost to income ratio rose to 51.2% in Q2FY2025 compared with 49.4%
in Q2FY2024, helping the Operating Profit to increase 10% to Rs 4147.40 crore.
Provisions and
contingencies up: The bank has showed 27% rise in provisions to Rs 1043.04 crore.
The loan loss provisions jumped 110% to Rs 1427 crore, while the bank has
written back standard asset provisions of Rs 384 crore in Q2FY25.
Effective tax rate declined to 23.5% in Q2FY2025 from 50.3% in Q2FY2024. Net Profit rose by 63%
YoY to Rs 2373.69 crore during quarter ended September 2024.
Financial Performance
H1FY2025:
Bank has posted 35%
increase in net profit to Rs 4076.42 crore in the half year ended September
2024 (H1FY2025). The net interest income increased 5% to Rs 12260.91 crore,
while non-interest income moved up 21% to Rs 3819.65 crore, pushing up net
total income by 9% to Rs 16080.56 crore in H1FY2025. The operating expenses
increased 13% to Rs 8255.85 crore, while provision and contingencies galloped
42% to Rs 2336.31 crore, causing profit before tax to decline 6% to Rs 5488.40
crore in H1FY2025. The cost-to-income ratio jumped to 51.3% in H1FY2025
compared to 49.3% in H1FY2024. An effective tax rate declined to 25.7% in
H1FY2025 compared to 48.7% in H1FY2024. The net profit has increased 35% to Rs
4076.42 crore in H1FY2025.
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Bank of India: Results
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Particulars
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2409 (3)
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2309 (3)
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Var %
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2409 (6)
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2309 (6)
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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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17354.55
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14971.18
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16
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34292.57
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29329.81
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17
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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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11369.44
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9231.67
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23
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22031.66
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17676.27
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25
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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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5985.11
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5739.51
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4
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12260.91
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11653.54
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5
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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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2517.65
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1687.95
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49
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3819.65
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3150.40
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21
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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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8502.76
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7427.46
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14
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16080.56
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14803.94
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9
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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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4355.36
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3671.90
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19
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8255.85
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7296.43
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13
|
15079.16
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13982.17
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8
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Operating Profits
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4147.40
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3755.56
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10
|
7824.71
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7507.51
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4
|
14068.61
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13392.62
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5
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Provisions &
Contingencies
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1043.04
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818.31
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27
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2336.31
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1642.47
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42
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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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3104.36
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2937.25
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6
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5488.40
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5865.04
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-6
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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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0.00
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0.00
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-
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PBT after EO
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3104.36
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2937.25
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6
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5488.40
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5865.04
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-6
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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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730.67
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1478.82
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-51
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1411.98
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2855.54
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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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2373.69
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1458.43
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63
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4076.42
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3009.50
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35
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6317.92
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4022.94
|
57
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EPS*(Rs)
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20.9
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12.8
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17.9
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13.2
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13.9
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8.8
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Adj BV (Rs)
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127.2
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106.9
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127.2
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106.9
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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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