Bank of India trades lower after lender releases its fourth quarter updates

Shares of Bank of India fell over 1% on Monday after the bank released its provisional figures for the quarter-ended March 2024. The public sector lender witnessed 11.66% growth in its total loans and advances to ₹13.23 lakh crore for the quarter.

Global gross advances rose 13.56% to ₹5.85 lakh crore while domestic advances grew 14.13% to ₹4.92 lakh crore. At the same time, the bank’s global deposits increased 10.2% to ₹7.37 lakh crore while its domestic deposits increased by 11.05% to ₹6.29 lakh crore.

Shares of the bank have returned close to 30% since the beginning of the year compared to just 0.69% returns recorded by the Nifty Bank index and just over 26% registered by the Nifty PSU Bank index. The stock has gained over 94% in the last one year compared to 95.29% returned by the Nifty PSU Bank.

Bank of India has witnessed a reasonable drop in its non-performing assets (NPA), at least till the end of the third quarter. Its global gross NPAs fell to 5.35% in the quarter-ended December 2023 as compared to 7.66% in the same period of previous fiscal. At the same time, its net NPAs dropped to 1.41% compared to 1.61% a year ago.

The bank’s global operating profit fell 18% y-o-y during the third quarter to ₹3,004 crore. The public sector lender’s net interest income fell 2% to ₹5,463 crore in Q3FY24 while its net interest margins dropped to 2.85% compared to 3.28% in the same period of previous fiscal. However, Bank of India’s net profit for Q3FY24 rose 62% on a year-on-year basis to ₹1,870 crore, primarily led by a significant drop in provisioning.

The lender’s total provisions before taxes fell to ₹501 crore for the third quarter of FY24 compared to ₹1,879 crore in the same period of previous fiscal.