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Bank of India has reported 52% growth
in net profit at Rs 1458.43 crore for the quarter ended September 2023
(Q2FY2024). The bank has posted 13% growth in net interest income (NII), while
the core fee income of the bank improved 45% in Q2FY2024. The Net Interest
Margin (NIM) of the bank rose to 3.08% in Q2FY2024 compared to 3.04% in the
corresponding quarter of previous year.
On business front, the bank as has posted 9% growth
in business with 10% rise in loan book. The asset quality of the bank has
improved in Q2FY2024. Bank has improved the credit to deposit ratio to 77.2% at
end September 2023 from 76.3% at end September 2022. The CASA ratio of the bank
has increased to 44.7% at end September 2023 from 44.1% at end September 2022.
Asset quality improves: The bank has improved asset quality in Q2FY2024.
The fresh slippages of loans stood at Rs 1650 crore
in Q2FY2024 compared with 2549 crore in previous quarter and Rs 1294 crore in
the corresponding quarter last year.
The recoveries of NPAs stood at Rs 1455 crore,
upgradations at Rs 183 crore and the write-off of loans was at Rs 2876 crore in
Q2FY2024.
The standard restructured loan book of the bank declined
to Rs 8541 crore end September 2023.
Provision coverage ratio was steady at 89.58% at
end September 2023 compared to 89.52% a quarter ago and 88.96% a year ago.
The capital adequacy ratio of the bank stood at 15.6%
with Tier I ratio at 13.4% at end September 2023.
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Asset Quality
Indicators: Bank of India
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|
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Sep-23
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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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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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31718.78
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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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-8
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-16
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-25
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Net NPA (Rs Crore)
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7978.26
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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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-2
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-1
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-10
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% Gross NPA
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5.84
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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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-83
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-147
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-267
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% Net NPA
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1.54
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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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-11
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-12
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-38
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% PCR
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89.58
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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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6
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-10
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62
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% CRAR - Basel III
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15.63
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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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3
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-65
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12
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% CRAR - Tier I -
Basel III
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13.35
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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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-45
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-105
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-3
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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:
Slow business growth: The business of the bank has increased 9% YoY to
Rs 1246879 crore end September 2023, driven by 10% rise in advances to Rs 543128
crore. Deposits rose 9% to Rs 703751 crore at end September 2023.
CASA deposits ratio improves: The CASA deposits of the bank increased 10% YoY
to Rs 314788 crore at end September 2023. The current account deposits
increased 9% to Rs 30690 crore, while saving account deposits increased 6% to
Rs 226267 crore end September 2023. The CASA ratio improved to 44.7% at end
September 2023 compared to 44.1% at end September 2022, while it was steady from
44.7% a quarter ago. The term deposits have increased 7% to Rs 388963 crore end
September 2023.
Retail loan driving loan growth: Advances growth was driven by retail loans
rising 15% YoY to Rs 100260 crore at end September 2023, while credit to
agriculture increased 11% to Rs 77206 crore and MSME 11% to Rs 73731 crore at
end September 2023. The corporate credit has rose 7% to Rs 201444 crore end
September 2023. The overseas credit has jumped 11% to Rs 90487 crore end
September 2023.
Investment
book of the bank increased 15%
YoY to Rs 206773 crore at end September 2023. The AFS book jumped 22% to Rs 47001
crore, while HTM book rose 12% to Rs 158030 crore at end September 2023. The
duration of the overall investment portfolio stood at 2.87 years end September
2023 compared with 3.11 years at end September 2022.
Margins improve: The bank has showed 95 bps YoY jump in cost of
deposits to 4.49%, while yield on advances increased 133 bps YoY to 8.54% in
Q2FY2024. Thus, the NIM has improved 4 bps YoY to 3.08%.
Book value of the bank stood at Rs 131.6 per share at end September 2023,
while the adjusted book value (net of NNPA and 25% of restructured advances)
was Rs 106.9 per share at end September 2023.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 30% increase in the interest
earned at Rs 14971.18 crore, while interest expenses increased 44% to Rs 9231.67
crore in Q2FY2024. NII improved 13% to Rs 5739.51 crore in the quarter ended
September 2023.
Strong growth in the core fee income: Bank has posted strong 45% growth in core fee income
to Rs 483 crore, while the recoveries and other income jumped 45% to Rs 625 crore
leading to 15% jump in the overall non-interest income to Rs 1687.95 crore in
the quarter ended September 2023. However, the treasury income declined -46% to
Rs 81 crore and forex income -39% to Rs 108 crore,
Expenses ratio rises: The operating expenses of the bank increased 17%
to Rs 3671.90 crore, as other expenses moved up 25% to Rs 1493.57 crore, while
employee expenses increased 13% to Rs 2178.33 crore in Q2FY2024. Cost to income
ratio rose to 49.4% in Q2FY2024 compared with 48.1% in Q2FY2023. Operating
Profit increased 11% to Rs 3755.56 crore.
Provisions and contingencies decline: The bank has showed -57% decline in provisions
to Rs 818.31 crore. The loan loss provisions rose 2% to Rs 678 crore, while standard
asset provisions fell -85% to Rs 173 crore. The bank has written back investment
provisions of Rs -33 crore,
Effective tax rate increased to 50.3% in Q2FY2024 from 34.3% in Q2FY2023. Net Profit
rose by 52% YoY to Rs 1458.43 crore during quarter ended September 2023.
Financial Performance H1FY2024:
Bank has posted 98% increase in net profit to Rs
3009.50 crore in the half year ended September 2023 (H1FY2024). The net
interest income increased 27% to Rs 11653.54 crore, while non-interest income
moved up 23% to Rs 3150.40 crore, pushing up net total income by 26% to Rs 14803.94
crore in H1FY2024. The operating expenses increased 18% to Rs 7296.43 crore, while
provision and contingencies dipped -49% to Rs 1642.47 crore, allowing profit
before tax to increase 152% to Rs 5865.04 crore in H1FY2024. The cost-to-income
ratio improved to 49.3% in H1FY2024 compared to 52.6% in H1FY2023. An effective
tax rate jumped to 48.7% in H1FY2024 compared to 34.5% in H1FY2023. The net
profit has increased 98% to Rs 3009.50 crore in H1FY2024.
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Bank of India: Results
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Particulars
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2309 (3)
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2209 (3)
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Var %
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2309 (6)
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2209 (6)
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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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14971.18
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11497.40
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30
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29329.81
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21470.04
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37
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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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9231.67
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6413.80
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44
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17676.27
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12314.01
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44
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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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5739.51
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5083.60
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13
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11653.54
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9156.03
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27
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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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1687.95
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1417.32
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19
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3150.40
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2569.04
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23
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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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7427.46
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6500.92
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14
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14803.94
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11725.07
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26
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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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3671.90
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3126.74
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17
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7296.43
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6168.08
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18
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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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3755.56
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3374.18
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11
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7507.51
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5556.99
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35
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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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818.31
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1912.06
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-57
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1642.47
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3233.80
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-49
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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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2937.25
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1462.12
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101
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5865.04
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2323.19
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152
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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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1478.82
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502.12
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195
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2855.54
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801.70
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256
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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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1458.43
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960.00
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52
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3009.50
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1521.49
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98
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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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14.2
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9.4
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14.7
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7.4
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15.1
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33.2
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Adj BV (Rs)
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106.9
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90.1
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106.9
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90.1
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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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