Bank
of India has reported 35% growth in net profit at Rs 2516.69
crore for the quarter ended December 2024 (Q3FY2025). The bank has posted 11% growth
in net interest income (NII), while the core fee income of the bank also
improved 18% in Q3FY2025. The Net Interest Margin (NIM) of the bank eased
marginally to 2.80% in Q3FY2025 compared to 2.85% in the corresponding quarter
of previous year.
On business front, the bank as has posted 14% growth in business
with strong 15% surge in loan book. The asset quality of the bank has continued
to improve in Q3FY2025. Bank has raised the credit to deposit ratio to 82.0% at
end December 2024 from 79.8% at end December 2023. However, the CASA ratio of
the bank has declined to 41.1% at end December 2024 from 43.9% at end December
2023.
Asset quality improves: The bank has continued
to improve asset quality in Q3FY2025.
The fresh slippages of loans stood at Rs 1045 crore in Q3FY2025
compared with 2546 crore in previous quarter and Rs 1313 crore in the
corresponding quarter last year.
The recoveries of NPAs stood at Rs 1264 crore, upgradations at Rs 108
crore and the write-off of loans was at Rs 3141 crore in Q3FY2025.
The standard restructured loan book of the bank declined to Rs 5432
crore end December 2024.
Provision coverage ratio improved to 92.48% at end December 2024
compared to 92.22% a quarter ago and 89.95% a year ago.
The capital adequacy ratio of the bank stood at 16.0% with Tier I
ratio at 13.6% at end December 2024.
The risk weighted assets of the bank has increased 13% YoY to Rs 448923
crore end December 2024,
Asset Quality Indicators: Bank of India
|
|
Dec-24
|
Sep-24
|
Jun-24
|
Mar-24
|
Dec-23
|
Variation
|
QoQ
|
YTD
|
YoY
|
Gross NPA (Rs Crore)
|
24048.48
|
27455.33
|
27715.76
|
29182.77
|
30237.15
|
-12
|
-18
|
-20
|
Net NPA (Rs Crore)
|
5410.05
|
5647.92
|
5701.83
|
6845.25
|
7627.16
|
-4
|
-21
|
-29
|
% Gross NPA
|
3.69
|
4.41
|
4.62
|
4.98
|
5.35
|
-72
|
-129
|
-166
|
% Net NPA
|
0.85
|
0.94
|
0.99
|
1.22
|
1.41
|
-9
|
-37
|
-56
|
% PCR
|
92.48
|
92.22
|
92.11
|
90.59
|
89.95
|
26
|
189
|
253
|
% CRAR - Basel III
|
16.00
|
16.63
|
16.18
|
16.96
|
16.06
|
-63
|
-96
|
-6
|
% CRAR - Tier I - Basel III
|
13.60
|
14.18
|
14.29
|
15.62
|
13.88
|
-58
|
-202
|
-28
|
Variation in basis points for figures given in percentages and
in % for figures in Rs crore
|
Business Highlights:
Healthy business growth: The business of
the bank has increased 14% YoY to Rs 1446295 crore end December 2024, driven by
15% surge in advances to Rs 651507 crore. Deposits rose 12% to Rs 794788 crore
at end December 2024.
CASA deposits ratio declines: The CASA
deposits of the bank increased 5% YoY to Rs 326260 crore at end December 2024. The
CASA ratio declined to 41.1% at end December 2024 compared to 43.9% at end
December 2023, while it was nearly steady from 41.2% a quarter ago. The term
deposits have increased 18% to Rs 468528 crore end December 2024. Overseas
deposits have increased 7% to Rs 116163 crore end December 2024.
Strong loan growth: Advances growth
was driven by retail loans rising 21% YoY to Rs 127825 crore at end December
2024, while credit to agriculture increased 18% to Rs 95173 crore and MSME 16% to
Rs 89134 crore at end December 2024. The corporate credit has also moved up 10%
to Rs 234136 crore end December 2024. The overseas credit has jumped 17% to Rs 105238
crore end December 2024.
Investment book of the bank increased 22% YoY to Rs 252176 crore at end December
2024. The SLR book moved up 27% to Rs 206663 crore, while non SLR book rose 3% to
Rs 45513 crore at end December 2024. The AFS book dipped 31% to Rs 30852 crore,
while HTM book increased 14% to Rs 184160 crore at end December 2024. The
duration of the AFS investment portfolio stood at 2.26 years end December 2024
compared with 3.13 years at end December 2023.
Margins ease slightly: The bank has
showed 34 bps YoY jump in cost of deposits to 4.96%, while yield on advances
increased 18 bps YoY to 8.55% in Q3FY2025. Thus, the NIM has eased 5 bps YoY
and 2 bps qoq to 2.80%
Branch expansion: The bank has
added 11 branches and 1 ATMs in Q3FY2025, taking overall tally to 5224 branches
and 8236 ATM`s end December 2024.
Book value of the bank stood at Rs 148.0
per share at end December 2024, while the adjusted book value (net of NNPA and
25% of restructured advances) was Rs 133.1 per share at end December 2024.
Quarterly Performance
NII rises on healthy loan growth: Bank has recorded 20% increase in the interest earned at Rs 18210.52
crore, while interest expenses increased 24% to Rs 12140.21 crore in Q3FY2025. NII
improved 11% to Rs 6070.31 crore in the quarter ended December 2024.
Healthy growth in the core fee income: Bank has posted strong 18% growth in core fee income to Rs 530 crore,
while the recoveries and other income jumped 16% to Rs 391 crore. Further, the
treasury income rebounded to Rs 266 crore, leading to 46% jump the overall
non-interest income to Rs 1746.38 crore in the quarter ended December 2024. The
forex income has declined 46% to Rs 60 crore in Q3FY2025.
Expenses ratio improves: The operating
expenses of the bank increased 13% to Rs 4114.12 crore, as other expenses moved
up 16% to Rs 1672.75 crore, while employee expenses increased 10% to Rs 2441.37
crore in Q3FY2025. Cost to income ratio improved to 52.6% in Q3FY2025 compared
with 54.9% in Q3FY2024, helping the Operating Profit to increase 23% to Rs 3702.57
crore.
Provisions and contingencies decline: The bank has showed 39% decline in provisions to Rs 303.70 crore. The
loan loss provisions declined 1% to Rs 603 crore, while the bank has written
back standard asset provisions of Rs 299 crore.
Effective tax rate rose to 26.0% in Q3FY2025 from 25.3% in
Q3FY2024. Net Profit rose by 35% YoY to Rs 2516.69 crore during quarter ended
December 2024.
Financial Performance 9MFY2025:
Bank has posted 35% increase in net profit to Rs 6593.11 crore in
the nine months ended December 2024 (9MFY2025). The net interest income
increased 7% to Rs 18331.22 crore, while non-interest income moved up 28% to Rs
5566.04 crore, pushing up net total income by 11% to Rs 23897.26 crore in
9MFY2025. The operating expenses increased 13% to Rs 12369.98 crore, while
provision and contingencies galloped 23% to Rs 2640.00 crore, allowing profit
before tax to increase 6% to Rs 8887.28 crore in 9MFY2025. The cost-to-income
ratio rose to 51.8% in 9MFY2025 compared to 51.0% in 9MFY2024. An effective tax
rate declined to 25.8% in 9MFY2025 compared to 41.7% in 9MFY2024. The net
profit has increased 35% to Rs 6593.11 crore in 9MFY2025.
Bank
of India: Results
|
Particulars
|
2412
(3)
|
2312
(3)
|
Var %
|
2412
(9)
|
2312
(9)
|
Var %
|
2403
(12)
|
2303
(12)
|
Var %
|
Interest Earned
|
18210.52
|
15217.98
|
20
|
52503.08
|
44547.79
|
18
|
60709.49
|
47647.72
|
27
|
Interest Expended
|
12140.21
|
9754.51
|
24
|
34171.86
|
27430.78
|
25
|
37656.57
|
27372.82
|
38
|
Net Interest Income
|
6070.31
|
5463.47
|
11
|
18331.22
|
17117.01
|
7
|
23052.92
|
20274.90
|
14
|
Other Income
|
1746.38
|
1193.12
|
46
|
5566.04
|
4343.52
|
28
|
6094.85
|
7099.89
|
-14
|
Net Total Income
|
7816.69
|
6656.59
|
17
|
23897.26
|
21460.53
|
11
|
29147.77
|
27374.79
|
6
|
Operating Expenses
|
4114.12
|
3652.65
|
13
|
12369.98
|
10949.08
|
13
|
15079.16
|
13982.17
|
8
|
Operating Profits
|
3702.57
|
3003.94
|
23
|
11527.28
|
10511.45
|
10
|
14068.61
|
13392.62
|
5
|
Provisions & Contingencies
|
303.70
|
501.11
|
-39
|
2640.00
|
2143.58
|
23
|
3969.54
|
7163.31
|
-45
|
Profit Before Tax
|
3398.87
|
2502.83
|
36
|
8887.28
|
8367.87
|
6
|
10099.07
|
6229.31
|
62
|
EO
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
PBT after EO
|
3398.87
|
2502.83
|
36
|
8887.28
|
8367.87
|
6
|
10099.07
|
6229.31
|
62
|
Provision for tax
|
882.18
|
633.32
|
39
|
2294.17
|
3488.86
|
-34
|
3781.15
|
2206.37
|
71
|
PAT
|
2516.69
|
1869.51
|
35
|
6593.11
|
4879.01
|
35
|
6317.92
|
4022.94
|
57
|
EPS*(Rs)
|
22.1
|
16.4
|
|
19.3
|
14.3
|
|
13.9
|
8.8
|
|
Adj BV (Rs)
|
133.1
|
111.5
|
|
133.1
|
111.5
|
|
117.3
|
100.9
|
|
*
Annualized on current equity of Rs 4552.67 crore. Face Value: Rs 10, Figures
in Rs crore
|
Source:
Capitaline Corporate Database
|
|