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Bank of India has reported 7% growth in net profit at Rs 1438.91 crore
for the quarter ended March 2024 (Q4FY2024). The bank has posted 7% growth in
net interest income (NII), while the core fee income of the bank improved 26%
in Q4FY2024. The Net Interest Margin (NIM) of the bank improved on sequential
basis to 2.92% in Q4FY2024 from 2.85% in Q3FY2024, while declined from 3.15% in
the corresponding quarter of previous year.
On business front, the
bank as has posted 12% growth in business with strong 14% surge in loan book.
The asset quality of the bank was has improved in Q4FY2024. Bank has
substantially improved the credit to deposit ratio to 79.4% at end March 2024
from 77.0% at end March 2023. However, the CASA ratio of the bank has declined
to 43.2% at end March 2024 from 44.7% at end March 2023.
Asset quality improves: The bank has continued
to improve asset quality in Q4FY2024.
The fresh slippages of
loans stood at Rs 2038 crore in Q4FY2024 compared with 1313 crore in previous
quarter and Rs 2625 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 1437 crore, upgradations at Rs 74 crore and the write-off of loans
was at Rs 1581 crore in Q4FY2024.
The standard
restructured loan book of the bank stood at Rs 7185 crore end March 2024.
Provision coverage ratio
was steady at 90.59% at end March 2024 compared to 89.95% a quarter ago and
89.68% a year ago.
The capital adequacy
ratio of the bank stood at 17.0% with Tier I ratio at 15.6% at end March 2024.
The risk weighted assets
of the bank has increased 16% YoY to Rs 412078 crore end March 2024,
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Asset Quality
Indicators: Bank of India
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Mar-24
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Dec-23
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Sep-23
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Jun-23
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Mar-23
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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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29182.77
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30237.15
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31718.78
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34582.01
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37685.56
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-3
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-23
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Net NPA (Rs Crore)
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6845.25
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7627.16
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7978.26
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8118.68
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8053.61
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-10
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-15
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% Gross NPA
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4.98
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5.35
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5.84
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6.67
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7.31
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-37
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-233
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% Net NPA
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1.22
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1.41
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1.54
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1.65
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1.66
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-19
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-44
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% PCR
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90.59
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89.95
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89.58
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89.52
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89.68
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64
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91
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% CRAR - Basel III
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16.96
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16.06
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15.63
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15.60
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16.28
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90
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68
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% CRAR - Tier I -
Basel III
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15.62
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13.88
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13.35
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13.80
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14.40
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174
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122
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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:
Healthy business growth:
The business of the bank
has increased 12% YoY to Rs 1323515 crore end March 2024, driven by 14% surge
in advances to Rs 585595 crore. Deposits rose 10% to Rs 737920 crore at end
March 2024.
CASA deposits ratio
declines: The
CASA deposits of the bank increased 6% YoY to Rs 318855 crore at end March
2024. The CASA ratio declined to 43.2% at end March 2024 compared to 44.7% at
end March 2023, while eased from 43.9% a quarter ago. The term deposits have
increased 13% to Rs 419065 crore end March 2024. Overseas deposits have
increased 6% to Rs 108203 crore end March 2024.
Strong loan growth: Advances growth was
driven by retail loans rising 18% YoY to Rs 111484 crore at end March 2024,
while credit to agriculture increased 17% to Rs 84460 crore and MSME 11% to Rs
78533 crore at end March 2024. The corporate credit moved up 12% to Rs 217915
crore end March 2024. The overseas credit increased 11% to Rs 93203 crore end
March 2024.
Investment book of the bank moved up 12% YoY to Rs 223617 crore at end March
2024. The SLR book moved up 13% to Rs 175302 crore, while non SLR book rose 8%
to Rs 48315 crore at end March 2024. The AFS book surged 23% to Rs 54988 crore,
while HTM book rose 8% to Rs 167343 crore at end March 2024. The duration of
the AFS investment portfolio stood at 2.65 years end March 2024 compared with
2.77 years at end March 2023.
Margins improve qoq,
decline yoy: The bank has showed 80 bps YoY jump in cost of deposits to 4.71%,
while yield on advances increased 52 bps YoY to 8.47% in Q4FY2024. Thus, the
NIM has declined 23 bps YoY, while rose 7 bps qoq to 2.92%
Branch expansion: The bank has added 9
branches and 2 ATMs in Q4FY2024, taking overall tally to 5170 branches and 8230
ATM`s end March 2024.
Book value of the bank stood at Rs
136.3 per share at end March 2024, while the adjusted book value (net of NNPA
and 25% of restructured advances) was Rs 117.3 per share at end March 2024.
Quarterly Performance
Moderate NII growth: Bank has recorded 20%
increase in the interest earned at Rs 16161.70 crore, while interest expenses
increased 29% to Rs 10225.80 crore in Q4FY2024. NII improved 7% to Rs 5935.90
crore in the quarter ended March 2024.
Healthy growth in the
core fee income: Bank has posted strong 26% growth in core fee income to Rs 462
crore, while the recoveries and other income moved up 3% to Rs 328 crore. However,
the treasury income declined 78% to Rs 380 crore and forex income dipped 28% to
Rs 110 crore., causing 43% dip in the overall non-interest income to Rs 1751.33
crore in the quarter ended March 2024.
Expenses ratio rise: The operating expenses
of the bank declines 7% to Rs 4130.07 crore, as employee expenses dipped 11% to
Rs 2543.56 crore, while other expenses moved up 1% to Rs 1586.51 crore in
Q4FY2024. Cost to income ratio increased to 53.7% in Q4FY2024 compared with
51.5% in Q4FY2023, causing 15% decline in the operating Profit to Rs 3557.16
crore.
Provisions and
contingencies decline: The bank has showed 11% decline in provisions to Rs 1825.96 crore.
The loan loss provisions surged 274% to Rs 2043 crore, while the bank has written
back investment provisions of Rs 78 crore and standard asset provisions Rs 139
crore.
Effective tax rate declined to 16.9% in Q4FY2024 from 36.7% in Q4FY2023. Net Profit rose by 7%
YoY to Rs 1438.91 crore during quarter ended March 2024.
Financial Performance
FY2024:
Bank has posted 57%
increase in net profit to Rs 6317.92 crore in the year ended March 2024
(FY2024). The net interest income increased 14% to Rs 23052.92 crore, while
non-interest income fell 14% to Rs 6094.85 crore, pushing up net total income
by 6% to Rs 29147.77 crore in FY2024. The operating expenses increased 8% to Rs
15079.16 crore, while provision and contingencies dipped 45% to Rs 3969.54
crore, allowing profit before tax to increase 62% to Rs 10099.07 crore in
FY2024. The cost-to-income ratio rose to 51.7% in FY2024 compared to 51.1% in
FY2023. An effective tax rate increased to 37.4% in FY2024 compared to 35.4% in
FY2023. The net profit has increased 57% to Rs 6317.92 crore in FY2024.
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Bank of India: Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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16161.70
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13449.94
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20
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60709.49
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47647.72
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27
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Interest Expended
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10225.80
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7926.09
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29
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37656.57
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27372.82
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38
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Net Interest Income
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5935.90
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5523.85
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7
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23052.92
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20274.90
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14
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Other Income
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1751.33
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3099.00
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-43
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6094.85
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7099.89
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-14
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Net Total Income
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7687.23
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8622.85
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-11
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29147.77
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27374.79
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6
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Operating Expenses
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4130.07
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4439.15
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-7
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15079.16
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13982.17
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8
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Operating Profits
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3557.16
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4183.70
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-15
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14068.61
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13392.62
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5
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Provisions &
Contingencies
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1825.96
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2050.53
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-11
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3969.54
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7163.31
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-45
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Profit Before Tax
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1731.20
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2133.17
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-19
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10099.07
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6229.31
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62
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Provision for tax
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292.29
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782.73
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-63
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3781.15
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2206.37
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71
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PAT
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1438.91
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1350.44
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7
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6317.92
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4022.94
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57
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EPS*(Rs)
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12.6
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11.9
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13.9
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8.8
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Adj BV (Rs)
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117.3
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100.9
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117.3
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100.9
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* Annualized on current equity of
Rs 4552.67 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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