Bank of India’s Q1FY24 net profit zooms 176% to ₹1,551 cr

Bank of India (BoI) reported a 176 per cent jump in first quarter standalone net profit at ₹1,551 crore against ₹561 crore in the year-ago quarter on the back of healthy growth in net interest income and other income, and decline in loan loss provisions.

Net interest income (difference between interest earned and interest expended) of the Mumbai-headquartered public sector bank was up 45 per cent y-o-y at ₹5,915 crore (₹4,072 crore in the year-ago quarter).

Other income, comprising income (including commission) from non-fund based banking activities, fees, earning from foreign exchange, profit/loss on sale of assets, profit/loss (including revaluation) from investments, recovery from accounts written off, etc, rose 27 per cent to ₹1,462 crore (₹1,152 crore).

NIM goes up

Net interest margin increased to 3.03 per cent in the reporting quarter from 2.55 per cent in the year-ago quarter. Loan loss provisions declined 40 per cent y-o-y to ₹777 crore (₹1,304 crore).

The gross non-performing assets (NPA) to gross advances position improved to 6.67 per cent as at June-end 2023, against 7.31 per cent as at March-end 2023.

The net NPA to net advances position improved a tad to 1.65 per cent as at June-end 2023 against 1.66 per cent as at March-end 2023.

Global deposits increased by 8.71 per cent y-o-y to stand at ₹6,96,544 crore as on June-end 2023. The share of low-cost current account, savings account (CASA) deposits in domestic deposits declined to 44.52 per cent as at June-end 2023 against 44.73 per cent as at March-end 2023.

Global Advances rose by 8.48 per cent y-o-y to stand at ₹5,18,264 crore. Within domestic advances, RAM (retail, agriculture and MSME) and corporate & other advances grew by 11.75 per cent and 10.56 per cent, respectively.

Rajneesh Karnatak, MD & CEO, expects the bank to clock 11-12 per cent growth in advances and 10 per cent growth in deposits in FY24. The bank could end FY24 with a GNPA ratio below 6 per cent on the back of cash recoveries and upgradation of stressed accounts aggregating ₹2,000 crore every quarter and a NIM of above 3 per cent, he said.

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