Bank of India Q1 PAT rises 10% to ₹1,703 crore, asset quality improves

Bank of India (BoI) reported a 10% year-over-year (YoY) rise in its net profit for the first quarter of fiscal year 2025 at ₹1,703 crore.

Operating profit declined 2%YoY to ₹3,677 crore during the quarter. Although asset quality improved compared to the same period last year, provisions witnessed an increase. Gross non-performing asset (NPA) ratio fell to 4.62% during the first quarter as compared to 6.67% in Q1FY24. Net NPA ratio fell to 0.99% from 1.65% in the same quarter last year.

In absolute terms, gross NPA declined by 20% YoY to ₹27,716 crore while net NPA declined by 30% YoY to ₹5,702 crore.

Provisions, however, increased 57% YoY to ₹1,293 crore mostly led by bad and doubtful loans. Shares of the lender, however, fell over 4.5% on Monday morning.

Net interest income (NII), the difference between interest expended and interest earned, rose 6% YoY to ₹6,275 crore during the quarter. Net interest margins improved to 3.07% from 3.03% in Q1FY24.

The bank's total capital adequacy ratio (CRAR) improved by 58 basis points (bps) and stood at 16.18% as on June 30, 2024 against 15.60% as on June 30, 2023.

Bank of India said its low-cost current account and savings account (CASA) deposits increased 5.51% YoY to ₹2.75 lakh crore during the quarter with CASA ratio standing at 42.68%.

The lender said its domestic advances increased by 17.29% YoY to ₹5.08 lakh crore in June 2024 while global advances increased by 15.82% YoY to ₹6 lakh crore. At the same time, domestic deposits increased by 9.91% YoY to ₹6.48 lakh crore while global deposits increased by 9.74% YoY to ₹7.64 lakh crore.

The bank’s credit cost stood at 0.85% in Q1FY25 against 0.64% in Q1FY24. Retail credit grew by 20.46% YoY to ₹1.15 lakh crore in June 2024 while agriculture credit grew by 22.18% YoY to ₹88,977 crore.

Shares of the lender have gained 6.5% since the beginning of the year. The stock has gained over 44% in the last one year.