Earnings Review
Other income, fall in provisions lift Bank of India PAT 35%
This story was originally published at 21:15 IST on 24 January 2025
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--Bank of India Oct-Dec net profit INR 25.17 bln vs INR 18.70 bln year ago
--Bank of India Oct-Dec total income INR 199.57 bln vs INR 164.11 bln yr ago
--Bank of India Oct-Dec provisions INR 3.04 bln vs INR 5.01 bln year ago
--Bank of India Oct-Dec NPA provisions INR 6.03 bln vs INR 6.12 bln year ago
--Bank of India Apr-Dec net profit INR 65.93 bln vs INR 48.79 bln year ago
--Bank of India Apr-Dec total income INR 580.69 bln vs INR 488.91 bln yr ago
--Bank of India gross NPA ratio 3.69% as on Dec 31 vs 4.41% quarter ago
--Bank of India net NPA ratio 0.85% as on Dec 31 vs 0.94% quarter ago
--Bank of India Basel-III capital adequacy ratio 16.00% as on Dec 31
--Bank of India Oct-Dec net interest income INR 60.70 bln, up 11% on year
--Bank of India Oct-Dec global NIM 2.80% vs 2.82% in Jul-Sept, 2.85% yr ago
--Bank of India global deposits at INR 7.95 tln as on Dec 31, up 12.3% YoY
--Bank of India global advances at INR 6.52 tln as on Dec 31, up 15.3% YoY
--Bank of India: CASA ratio at 41.05% as on Dec 31
--Bank of India Oct-Dec credit cost 0.39% vs 0.46% yr ago
--Bank of India provision coverage ratio at 92.48% as on Dec 31
--Bk of India Oct-Dec cost of deposit 4.96% vs 4.95% in Jul-Sept, 4.62% yr ago
--Bank of India Oct-Dec fresh slippages INR 10.45 bln vs INR 11.72 bln yr ago
--Bank of India Oct-Dec recoveries, upgrades INR 13.72 bln vs INR 13.34 bln yr ago
By Kabir Sharma
MUMBAI – A sharp fall in provisions and jump in other income helped Bank of India report a 34.6% on-year rise in its net profit for Oct-Dec on Friday. The state-owned bank's bottom line increased to INR 25.17 billion for the quarter ended December, with the sequential growth being 6%.
The bank declared its earnings post market hours. Shares of the bank closed 1.3% lower at INR 98.37 on the National Stock Exchange on Friday.
In Oct-Dec, Bank of India's provisions and contingencies were down 39.4% at INR 3.04 billion, with fresh slippages decreasing to INR 10.45 billion from INR 23.57 billion in Jul-Sept and INR 11.72 billion in the last quarter of 2023. The gross non-performing assets ratio improved to 3.69% as on Dec. 31 from 4.41% a quarter ago and 5.35% a year ago, while the net NPA ratio declined to 0.85% from 0.94% at the end of September and 1.41% last year.
On the income front, other income in Oct-Dec jumped 46.4% year-on-year to INR 17.46 billion, with recoveries from written-off accounts at INR 3.91 billion. Profit from sale and revaluation of investments, at INR 2.66 billion, also aided, with the bank having seen a loss of INR 1.29 billion under this head in Oct-Dec 2023.
Meanwhile, the bank's net interest income rose 11.1% in Oct-Dec to INR 60.70 billion, backed by a 15.3% growth in global advances to INR 6.52 trillion as at the end of December. Growth in deposits lagged that in advances, coming in at 12.3% to INR 7.95 trillion as on Dec. 31, with the current account, savings account ratio declining to 41.05% from 41.18% a quarter ago and 43.88% a year ago. This showed up in the cost of deposits, which rose slightly to 4.96% in Oct-Dec from 4.95% a quarter ago and 4.62% a year ago.
On the whole, Bank of India's total income in Oct-Dec was INR 199.57 billion, up 21.6% on year. For Apr-Dec, total income was INR 580.69 billion, up 18.8%, while the net profit for the nine months was INR 65.93 billion, 35.1% higher from last year. The net interest margin saw a marginal fall of 2 basis points in Oct-Dec to 2.80%.
On the asset quality side, Bank of India's credit cost improved to 0.39% in Oct-Dec from 0.46% a year ago, with NPA provisions edging down to INR 6.03 billion from INR 6.12 billion. Gross cash recoveries, comprising recovery and upgrades, for the reporting quarter stood at INR 18.36 billion, up from INR 16.26 billion last year. The provision coverage ratio was 92.48% as on Dec. 31, while the capital adequacy ratio was 16.00%. End
Edited by Deepshikha Bhardwaj
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