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Informist, Tuesday, Jul. 29, 2025

By Priyasmita Dutta

NEW DELHI – Bank of India's net profit for the June quarter rose over 32% on year on robust other income, led by a surge in trading gains. The public-sector bank reported a net profit of INR 22.52 billion during Apr-Jun, down 14% on quarter. The bank's other income rose over 66% on year to INR 21.66 billion, with trading gains rising fivefold to INR 8.20 billion in the June quarter from INR 1.66 billion a year ago. The bank's other income was, however, 37% lower than in the trailing quarter when treasury income had risen over 26% on year.

A 15% fall in provisions also boosted the bank's bottom line. Bank of India's provisions fell to INR 10.96 billion in the June quarter, down 18% on quarter. Within this, the bank provisioned INR 11.04 billion for non-performing assets, down 9% on year. The bank released its financial results in the post-market hours. Tuesday, shares of the bank closed at INR 112.17 on the National Stock Exchange, up 0.6% from Monday's close.

The bank's total income for the June quarter rose over 12% on year to INR 205.18 billion. Sequentially, the total income was down 5.7%.

The trading gains were a saving grace for Bank of India, especially as its net interest income for the quarter fell 3% on year to INR 60.68 billion. The bank's net interest margin during Apr-Jun was down 6 basis points on quarter at 2.55%, and 52 bps lower than the year-ago figure. Its cost of funds fell to 4.66% in the June quarter, from 4.73% in the trailing quarter and 4.81% in June last year.

The bank's business performance was steady, with its global advances and global deposits rising over 12% and over 9%, respectively, to INR 6.72 trillion and INR 8.34 trillion as of Jun. 30. Within advances, gross domestic advances were up over 11% on year at INR 5.65 trillion as of Jun. 30, with loans to the retail, agriculture, and micro, small, and medium enterprises portfolio rising 17% on year to INR 3.28 trillion. Within this, retail advances rose 20% on year to 1.38 trillion at the end of June.

Within deposits, domestic deposits were up 9.6% on year at INR 7.10 trillion, with total term deposits growing to INR 4.25 trillion at the end of June, higher than INR 3.69 trillion a year ago. The domestic current account savings account deposits ratio was 39.88% at the end of June, lower than 40.29% at the end of March and 42.68% a year ago. In Apr-Jun, the cost of deposits fell 13 bps sequentially to 4.85%. On a year-on-year basis, the cost of deposits was down 3 bps.

Bank of India's Apr-Jun cost-to-income ratio fell marginally on year to 51.31% from 51.47% a year ago but rose from 48.53% a quarter ago. The capital adequacy ratio based on Basel-III norms was 17.39% at the end of June, lower than 17.77% at the end of March but higher than 16.18% at the end of June 2024.

Bank of India's other income, the primary boost to the bottom line, also included INR 3.22 billion from recovery in previously written-off accounts during the quarter. The net non-performing assets ratio fell 7 bps sequentially to 0.75% at the end of June, while the gross non-performing assets ratio fell 35 bps to 2.92%. On a year-on-year basis, the net non-performing assets ratio fell 24 bps and the gross non-performing assets ratio fell 170 bps. The bank's provision coverage ratio rose 55 bps sequentially to 92.94% as of Jun. 30. On a year-on-year basis, the provision coverage ratio rose 83 bps. 

In Apr-Jun, the Mumbai-headquartered bank's slippage ratio was 0.33%, up just 1 bp from the March quarter and down 2 bps from the June quarter of FY25. The bank reported fresh slippages of INR 20.80 billion in the reporting quarter, higher than INR 16.89 billion last year, while upgrades in the quarter were to the tune of INR 5.73 billion as against INR 650.00 million a quarter ago and INR 8.84 billion a year ago. In the June quarter, Bank of India wrote off loans amounting to INR 24.59 billion, higher than INR 22.67 billion written off in the March quarter and INR 13.12 billion in June last year.  End

Edited by Rajeev Pai

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