State-owned Bank of India (BoI) reported a 10 per cent year-on-year (YoY) growth in net profit for the quarter ending June 2024 (Q1FY25), driven by lower taxes. The bank’s net profit for the quarter stood at Rs 1,703 crore, up from Rs 1,551 crore in the corresponding period a year ago.
Net interest income (NII) increased 6 per cent YoY to Rs 6,275 crore in Q1FY25, compared to Rs 5,915 crore in Q1FY24, supported by robust growth in advances. However, the bank’s non-interest income declined by 12 percent YoY to Rs 1,302 crore.
The bank’s net interest margin, a key measure of profitability, improved to 3.07 per cent in Q1FY25, up 14 basis points (bps) from the preceding quarter. Provisions rose 57 per cent YoY to Rs 1,293 crore but declined 29 per cent sequentially.
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Gross slippages for the quarter stood at Rs 2,973 crore, lower than Rs 3,309 crore in Q4FY24 and Rs 4,030 crore in Q1FY24. Of the total slippages in Q1FY25, Rs 1,056 crore were from the MSME sector, Rs 588 crore from the retail portfolio, Rs 737 crore from the agriculture portfolio, and Rs 564 crore from the corporate sector.
The bank’s asset quality showed improvement, with the gross non-performing assets (NPAs) ratio at 4.62 per cent in Q1FY25, down 36 bps from the previous quarter. Net NPAs also decreased by 23 bps to 0.99 per cent in Q1FY25. The provision coverage ratio (PCR) improved to 92.11 per cent, up from 90.59 per cent in Q4FY24.
Advances increased by 15.82 per cent YoY and 2.50 per cent sequentially to Rs 6 trillion. Deposits also grew by 9.91 per cent YoY and 2.89 per cent sequentially to Rs 6.47 trillion during Q1FY25.
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