Q3 results: Bank of India net profit jumps 62% to Rs 1,870 crore

The bank’s gross non-performing asset (NPA) stood at 5.35 percent, down from 7.66 percent in the year-ago period. On the other hand, net NPA stood at 1.41 percent, improving from 1.61 percent.

The bank’s net interest income (NII), or difference between interest earned and expended, moderated 2% y-o-y to Rs 5,463 crore during Q3. Net interest margin (NIM), meanwhile, moderated to 2.85% from 3.08% in Q2.

• Operating Profit stood at Rs.3,004 cr for Q3FY24 against Rs.3,652 Cr in Q3FY23 and Rs.3,756 Cr in Q2FY24
• The bank’s gross non-performing asset stood at 5.35 percent, down from 7.66 percent in the year-ago period

Commenting on this, Rajneesh Karnatak, MD & CEO, said, “The delta at which cost of deposit is increasing quarter-on-quarter (q-o-q) is much higher than delta we are getting on yield on advances, that is the reason for pressure on NII.” Going ahead, pressure on NIM due to deposit rush by banks will continue, but we will aim to maintain NIM around 3%, he added.

Further, the bank’s advances rose 11% y-o-y to Rs 5.65 trillion as on December 31. Retail, agriculture and micro, small and medium enterprises loans formed 55% of the lender’s loan book and grew 14% y-o-y, whereas corporate loans grew 9% y-o-y to Rs 2.12 trillion.

Deposits, meanwhile, rose 8% y-o-y to Rs 7.07 trillion, of which low-cost current account and savings account (CASA) ratio stood at 43.88%. Bulk deposits accounted for nearly 12% of the bank’s deposit base while retail term deposits accounted for the rest. The bank is unlikely to raise deposit rates going ahead and expects the Reserve Bank of India to cut repo rate in the first quarter of next financial year, Karnatak said.

Bank of India’s asset quality improved further, with gross and net non-performing asset (GNPA, NNPA) ratio moderating to 5.35% and 1.41% as on December 31 from 5.84% and 1.54% a quarter ago, respectively. The bank aims to lower GNPA to 5.10% and net NPA to 1.30% by end of March, the MD said.