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Bank of India has reported 176%
surge in net profit at Rs 1551.07 crore for the quarter ended June 2023
(Q1FY2024). The bank has posted healthy 45% growth in net interest income
(NII), while the core fee income of the bank also improved 24% in Q1FY2024. The
Net Interest Margin (NIM) of the bank improved to 3.03% in Q1FY2024 compared to
2.55% in the corresponding quarter of previous year.
On business front, the bank as has posted 9% growth
in business with strong 8% rise in loan book. The asset quality of the bank was
stable in Q1FY2024. Bank has maintained stable credit to deposit ratio at 74.4%
at end June 2023 from 74.6% at end June 2022. The CASA ratio of the bank was
also stable at 44.7% at end June 2023 from 44.7% at end June 2022.
Asset quality stable: The bank has maintained stable asset quality in
Q1FY2024.
The fresh slippages of loans stood at Rs 2549 crore
in Q1FY2024 compared with 2625 crore in previous quarter and Rs 2833 crore in
the corresponding quarter last year.
The recoveries of NPAs stood at Rs 1120 crore,
upgradations at Rs 700 crore and the write-off of loans was at Rs 3831 crore in
Q1FY2024.
The standard restructured loan book of the bank
stood at Rs 9210 crore end June 2023.
Provision coverage ratio was steady at 89.52% at
end June 2023 compared to 89.68% a quarter ago and 87.96% a year ago.
The capital adequacy ratio of the bank stood at 15.6%
with Tier I ratio at 13.8% at end June 2023.
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Asset Quality
Indicators: Bank of India
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Jun-23
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Mar-23
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Dec-22
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Sep-22
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Jun-22
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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34582.01
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37685.56
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38884.61
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42014.40
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44414.67
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-8
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-22
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Net NPA (Rs Crore)
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8118.68
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8053.61
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7646.19
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8836.18
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9775.23
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1
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-17
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% Gross NPA
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6.67
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7.31
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7.66
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8.51
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9.30
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-64
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-263
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% Net NPA
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1.65
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1.66
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1.61
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1.92
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2.21
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-1
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-56
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% PCR
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89.52
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89.68
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90.27
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88.96
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87.96
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-16
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156
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% CRAR - Basel III
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15.60
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16.28
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15.60
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15.51
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15.61
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-68
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-1
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% CRAR - Tier I -
Basel III
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13.80
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14.40
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13.61
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13.38
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13.27
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-60
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53
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Moderate business growth: The business of the bank has increased 9% YoY to
Rs 1214808 crore end June 2023, driven by 8% rise in advances to Rs 518264 crore.
Deposits rose 9% to Rs 696544 crore at end June 2023.
CASA deposits ratio declines: The CASA deposits of the bank declined 9% YoY to
Rs 311564 crore at end June 2023. The current account deposits increased 17% to
Rs 35596 crore, while saving account deposits increased 6% to Rs 225020 crore
end June 2023. The CASA ratio was steady at 44.7% at end June 2023 compared to 44.7%
at end June 2022 as well as 44.7% a quarter ago. The term deposits rose 1% to
Rs 384980 crore end June 2023.
Strong loan growth: Advances growth was driven by retail loans
rising 15% YoY to Rs 95963 crore at end June 2023, while credit to agriculture
increased 10% to Rs 72801 crore and MSME 9% to Rs 71190 crore at end June 2023.
The corporate credit rose 4% to Rs 193292 crore end June 2023. The overseas
credit has jumped 11% to Rs 85018 crore end June 2023.
Investment
book of the bank expanded 16%
YoY to Rs 203474 crore at end June 2023. The AFS book rose 6% to Rs 47616 crore,
while HTM book jumped 19% to Rs 154410 crore at end June 2023. The duration of
the AFS investment portfolio stood at 2.67 years end June 2023 compared with 3.64
years at end June 2022.
Margins improve: The bank has showed 73 bps YoY increase in cost
of deposits to 4.22%, while yield on advances jumped 152 bps YoY to 8.10% in
Q1FY2024. Thus, the NIM has improved 48 bps YoY to 3.03%.
Branch expansion: The bank has added 1 branches and 11 ATMs in
Q1FY2024, taking overall tally to 5153 branches and 8225 ATM`s end June 2023.
Book value of the bank stood at Rs 130.1 per share at end June 2023, while
the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 104.7
per share at end June 2023.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 44% increase in the interest
earned at Rs 14358.63 crore, while interest expenses increased 43% to Rs 8444.60
crore in Q1FY2024. NII improved 45% to Rs 5914.03 crore in the quarter ended
June 2023.
Healthy growth in the core fee income: Bank has posted strong 24% growth in core fee
income to Rs 355 crore, while the recoveries and other income rose 6% to Rs 183
crore and the treasury income rebounded to Rs 297 crore, leading to 27% jump in
the overall non-interest income to Rs 1462.45 crore in the quarter ended June
2023. The forex income dipped 58% to Rs 183 crore.
Expenses ratio dips: The operating expenses of the bank increased 19%
to Rs 3624.53 crore, as other expenses moved up 11% to Rs 1367.35 crore, while
employee expenses jumped 25% to Rs 2257.18 crore in Q1FY2024. Cost to income
ratio dipped to 49.1% in Q1FY2024 compared with 58.2% in Q1FY2023, helping the
Operating Profit to increase 72% to Rs 3751.95 crore.
Provisions and contingencies decline: The bank has showed -38% decline in provisions
to Rs 824.16 crore. The loan loss provisions declined -40% to Rs 777 crore,
while the bank has written back investment provisions of Rs 63 crore. However,
the standard asset provisions increased 383% to Rs 111 crore.
Effective tax rate jumped to 47.0% in Q1FY2024 from 34.8% in Q1FY2023. Net
Profit rose by 176% YoY to Rs 1551.07 crore during quarter ended June 2023.
Financial Performance FY2023:
Bank has posted 18% increase in net profit to Rs
4022.94 crore in the year ended March 2023 (FY2023). The net interest income
increased 44% to Rs 20274.90 crore, while non-interest income declined 10% to
Rs 7099.89 crore. Net total income increased 25% to Rs 27374.79 crore in
FY2023. The operating expenses increased 17% to Rs 13982.17 crore, while
provision and contingencies galloped 62% to Rs 7163.31 crore. Profit before tax
increased 12% to Rs 6229.31 crore in FY2023. The cost-to-income ratio improved
to 51.1% in FY2023 compared to 54.5% in FY2022. An effective tax rate declined
to 35.4% in FY2023 compared to 38.8% in FY2022. The net profit has increased
18% to Rs 4022.94 crore in FY2023.
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Bank of India: Results
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Particulars
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2306 (3)
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2206 (3)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Interest Earned
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14358.63
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9972.64
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44
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47647.72
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38075.83
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25
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Interest Expended
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8444.60
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5900.21
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43
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27372.82
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24013.73
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14
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Net Interest Income
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5914.03
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4072.43
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45
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20274.90
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14062.10
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44
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Other Income
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1462.45
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1151.72
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27
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7099.89
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7878.73
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-10
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Net Total Income
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7376.48
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5224.15
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41
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27374.79
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21940.83
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25
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Operating Expenses
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3624.53
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3041.34
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19
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13982.17
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11952.38
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17
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Operating Profits
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3751.95
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2182.81
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72
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13392.62
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9988.45
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34
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Provisions &
Contingencies
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824.16
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1321.74
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-38
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7163.31
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4421.70
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62
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Profit Before Tax
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2927.79
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861.07
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240
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6229.31
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5566.75
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12
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Provision for tax
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1376.72
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299.58
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360
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2206.37
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2162.05
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2
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PAT
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1551.07
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561.49
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176
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4022.94
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3404.70
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18
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EPS*(Rs)
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15.1
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5.5
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9.8
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8.3
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Adj BV (Rs)
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104.7
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86.1
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100.9
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83.2
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* Annualized on current equity of
Rs 4104.31 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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