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Informist, Friday, May 9, 2025

 

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--Bank of India Jan-Mar net profit INR 26.26 bln vs INR 14.39 bln yr ago 
--Bank of India Jan-Mar total income INR 217.5 bln vs INR 179.1 bln yr ago 
--Bank of India to pay INR 4.05 per share dividend 
--Bank of India Jan-Mar provisions INR 13.38 bln vs INR 18.26 bln year ago 
--Bank of India Jan-Mar NPA provisions INR 13.47 bln vs INR 20.43 bln yr ago 
--Bank of India FY25 net profit INR 92.19 bln vs INR 63.18 bln year ago 
--Bank of India FY25 total income INR 798.20 bln vs INR 668.04 bln yr ago 
--Bank of India gross NPA ratio 3.27% as on Mar 31 vs 3.69% quarter ago 
--Bank of India net NPA ratio 0.82% as on Mar 31 vs 0.85% quarter ago 
--Bank of India Basel-III capital adequacy ratio 17.77% as on Mar 31 
--Bank of India Jan-Mar net interest income INR 60.63 bln, up 2.1% on year 
--Bank of India Jan-Mar domestic NIM 2.91% vs 2.98% in Oct-Dec, 3.3% yr ago 
--Bank of India global deposits at INR 8.17 tln as on Mar 31, up 10.7% YoY 
--Bank of India global advances at INR 6.66 tln as on Mar 31, up 13.7% YoY 
--Bank of India: Domestic CASA ratio at 40.28% as on Mar 31 vs 41.05?c31 
--Bank of India Jan-Mar credit cost 0.84% vs 1.70% year ago 
--Bank of India provision coverage ratio at 92.39% as on Mar 31
--Bank of India slippage ratio at 0.32% as on Mar 31 vs 0.38% year ago 
--Bank of India Jan-Mar fresh slippages INR 19.13 bln vs INR 19.8 bln yr ago 
--Bank of India Jan-Mar recoveries INR 19.75 bln vs INR 14.37 bln yr ago
--Bk of India Jan-Mar local slippages INR 19.88 bln vs INR 20.06 bln yr ago 

 

By Aaryan Khanna

 

NEW DELHI – Bank of India reported a surge in its net profit in Jan-Mar by over 80% on year, helped by a jump in other income and fall in provisions. Net interest income grew at a sluggish pace in the reporting quarter, and a tripling in tax expenses ate into the bottomline growth.

 

The state-owned lender reported a net profit of INR 26.26 billion in Jan-Mar, up 82.5% on year, and up 4.3% sequentially. Other income nearly doubled from a year ago to INR 34.28 billion in the March quarter, helped by treasury income rising over 26% on year. The other income also included recoveries from accounts previously written off, the bank said.

 

Other income made up over 15% of the bank's total income in Jan-Mar, which was around INR 217.51 billion, up 21.4% on year. Net interest income grew by only 2.1% on year to INR 60.63 billion in Jan-Mar. However, the bank was able to keep its operating expense growth in check, leading to operating profit rising by 37.3% on year to INR 48.85 billion. Moreover, provisions and contigencies fell to INR 13.38 billion in the March quarter from INR 18.26 billion a year ago.

 

Of this, non-performing asset provisions shrank to INR 13.47 billion in the reporting quarter, down 34.1% on year. Asset quality improved across the board. The credit cost halved to 0.84% in Jan-Mar from 1.70% a year ago. The bank's gross NPA ratio stood at 3.27% as on Mar. 31, down 42 basis points on quarter and 171 bps on year. The net NPA ratio bettered by a smaller margin, and was 0.82% on Mar. 31 from 0.85% on Dec. 31 and 1.22% a year ago. The provision coverage ratio was 92.39%.

 

The lender reported fresh slippages of INR 19.13 billion in the March quarter, down slightly from INR 19.80 billion in the same period a year ago. Domestic slippages, which included debits in existing NPA accounts, were also down marginally to INR 19.88 billion. Meanwhile, recoveries in the reporting quarter rose to INR 19.75 billion, up over 37% on year.

 

The slow growth in interest income was reflected in the margins, which shrank as the Reserve Bank of India's Monetary Policy Committee cut the policy repo rate by 25 bps in February. This had dragged down rates on external-benchmark-linked loans, while deposit rates had not adjusted as quickly. The bank's domestic net interest margin in Jan-Mar fell to INR 2.61%, down 19 bps sequentially and 31 bps from a year ago.

 

The lender's global advances rose 13.7% on year to INR 6.66 trillion on Mar. 31, of which INR 5.64 trillion were domestic advances. Retail, agricultural and micro-, small- and medium-enterprise loans comprised INR 3.23 trillion of the domestic advances.

 

Meanwhile, the deposit base rose 10.7% on year to INR 8.17 trillion globally at the end of March, of which INR 7.01 trillion were domestic deposits. The low-cost savings account ratio shrank slightly to 40.28% as on Mar. 31, from 41.05% a quarter. The bank said its Basel-III capital adequacy ratio was 17.77% at the end of March.

 

Along with the results, the bank's board also approved a final dividend of INR 4.05 per share. Shares of Bank of India closed 2.2% higher at INR 110.22 on the National Stock Exchange on Friday. The bank declared earnings after market hours.  End

 

Edited by Deepshikha Bhardwaj

 

 

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