Results     25-Jan-25
Analysis
Bank of India
Healthy loan growth at 15%, asset quality improving
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

 

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