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Bank of India has reported 62% growth in net profit at Rs 1869.51 crore
for the quarter ended December 2023 (Q3FY2024) driven by sharp decline in the
credit cost. The bank has recorded strong growth in the core fee at 17% in
Q3FY2024. However, the net interest income (NII) fell 2% due to decline in the Net
Interest Margin (NIM) to 2.85% in Q3FY2024 compared to 3.28% in the
corresponding quarter of previous year.
On business front, the
bank as has posted 10% growth in business with strong 11% surge in loan book.
The asset quality of the bank has further improved in Q3FY2024. Bank has
substantially improved the credit to deposit ratio to 79.8% at end December
2023 from 77.7% at end December 2022. However, the CASA ratio of the bank has
declined to 43.9% at end December 2023 from 44.6% at end December 2022.
Asset quality improves: The bank has continued
to improve asset quality in Q3FY2024.
The fresh slippages of
loans stood at Rs 1313 crore in Q3FY2024 compared with 1650 crore in previous
quarter and Rs 1217 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 1248 crore, upgradations at Rs 86 crore and the write-off of loans
was at Rs 1461 crore in Q3FY2024.
The standard
restructured loan book of the bank declined to Rs 8089 crore end December 2023.
Provision coverage ratio
was steady at 89.95% at end December 2023 compared to 89.58% a quarter ago and
90.27% a year ago.
The capital adequacy
ratio of the bank stood at 16.1% with Tier I ratio at 13.9% at end December
2023.
The risk weighted assets
of the bank has increased 17% YoY to Rs 397805 crore end December 2023,
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Asset Quality
Indicators: Bank of India
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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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Dec-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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30237.15
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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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-5
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-20
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-22
|
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Net NPA (Rs Crore)
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7627.16
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7978.26
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8118.68
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8053.61
|
7646.19
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-4
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-5
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0
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% Gross NPA
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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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7.66
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-49
|
-196
|
-231
|
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% Net NPA
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1.41
|
1.54
|
1.65
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1.66
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1.61
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-13
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-25
|
-20
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% PCR
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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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90.27
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37
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27
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-32
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% CRAR - Basel III
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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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15.60
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43
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-22
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46
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% CRAR - Tier I -
Basel III
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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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13.61
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53
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-52
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27
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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 10% YoY to Rs 1272887 crore end December 2023, driven by 11%
surge in advances to Rs 565060 crore. Deposits rose 8% to Rs 707827 crore at
end December 2023.
CASA deposits ratio improves
qoq, eases yoy: The CASA deposits of the bank increased 7% YoY to Rs 310595 crore
at end December 2023. The CASA ratio declined to 43.9% at end December 2023
compared to 44.6% at end December 2022, while improved from 43.1% a quarter
ago. The term deposits have increased 10% to Rs 397233 crore end December 2023.
Overseas deposits have moved up 12% to Rs 108690 crore end December 2023.
Strong loan growth: Advances growth was
driven by retail loans rising 15% YoY to Rs 105445 crore at end December 2023,
while credit to agriculture increased 14% to Rs 80345 crore and MSME 11% to Rs
76600 crore at end December 2023. The corporate credit rose 9% to Rs 212622
crore end December 2023. The overseas credit has jumped 11% to Rs 90048 crore
end December 2023.
Investment book of the bank increased 13% YoY to Rs 207392 crore at end December
2023. The SLR book moved up 16% to Rs 163115 crore, while non SLR book rose 3%
to Rs 44277 crore at end December 2023. The AFS book jumped 33% to Rs 44788
crore, while HTM book rose 8% to Rs 161164 crore at end December 2023. The
duration of the AFS investment portfolio stood at 3.31 years end December 2023
compared with 3.33 years at end December 2022.
Margins dips: The bank has showed 90
bps YoY jump in cost of deposits to 4.62%, while yield on advances increased 70
bps YoY to 8.37% in Q3FY2024. Thus, the NIM has dipped 43 bps YoY and 23 bps
qoq to 2.85%
Branch expansion: The bank has added 6
branches taking overall tally to 5161 branches and 8228 ATM`s end December
2023.
Book value of the bank stood at Rs
132.6 per share at end December 2023, while the adjusted book value (net of
NNPA and 25% of restructured advances) was Rs 111.5 per share at end December
2023.
Quarterly Performance
NII declines on dip in NIMs:
Bank has recorded 20%
increase in the interest earned at Rs 15217.98 crore, while interest expenses
increased 37% to Rs 9754.51 crore in Q3FY2024. NII fell 2% to Rs 5463.47 crore
in the quarter ended December 2023.
Healthy growth in the
core fee income: Bank has posted strong 17% growth in core fee income to Rs 449
crore, while the recoveries and other income jumped 14% to Rs 336 crore. However,
the forex income dipped 54% to Rs 112 crore and the treasury segment witnessed losses
of Rs 129 crore, causing 17% dip in the overall non-interest income to Rs
1193.12 crore in the quarter ended December 2023.
Expenses ratio jumps: The operating expenses
of the bank increased 8% to Rs 3652.65 crore, as employee expenses increased
24% to Rs 2209.39 crore in Q3FY2024. Other expenses declined 9% to Rs 1443.26
crore. Cost to income ratio increased to 54.9% in Q3FY2024 compared with 48.0%
in Q3FY2023, causing 18% decline in the Operating Profit to Rs 3003.94 crore.
Provisions and
contingencies decline: The bank has showed 73% decline in provisions to Rs 501.11 crore.
The loan loss provisions dipped 44% to Rs 612 crore, while the bank has written
back standard asset provisions of Rs 307 crore. Investment provisions were
higher at Rs 196 crore.
Effective tax rate declined to 25.3% in Q3FY2024 from 35.1% in Q3FY2023. Net Profit rose by 62%
YoY to Rs 1869.51 crore during quarter ended December 2023. The bank has
shifted to new tax regime.
Financial Performance
9MFY2024:
Bank has posted 83%
increase in net profit to Rs 4879.01 crore in the nine month ended December
2023 (9MFY2024). The net interest income increased 16% to Rs 17117.01 crore,
while non-interest income moved up 9% to Rs 4343.52 crore, pushing up net total
income by 14% to Rs 21460.53 crore in 9MFY2024. The operating expenses
increased 15% to Rs 10949.08 crore, while provision and contingencies dipped 58%
to Rs 2143.58 crore, allowing profit before tax to increase 104% to Rs 8367.87
crore in 9MFY2024. The cost-to-income ratio improved to 51.0% in 9MFY2024
compared to 50.9% in 9MFY2023. An effective tax rate rose to 41.7% in 9MFY2024
compared to 34.8% in 9MFY2023. The net profit has increased 83% to Rs 4879.01
crore in 9MFY2024.
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Bank of India: Results
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Particulars
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2312 (3)
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2212 (3)
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Var %
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2312 (9)
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2212 (9)
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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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15217.98
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12727.75
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20
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44547.79
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34197.79
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30
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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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9754.51
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7132.72
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37
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27430.78
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19446.73
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41
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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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5463.47
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5595.03
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-2
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17117.01
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14751.06
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16
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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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1193.12
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1431.85
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-17
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4343.52
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4000.89
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9
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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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6656.59
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7026.88
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-5
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21460.53
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18751.95
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14
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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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3652.65
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3374.95
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8
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10949.08
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9543.03
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15
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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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3003.94
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3651.93
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-18
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10511.45
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9208.92
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14
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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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501.11
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1878.98
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-73
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2143.58
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5112.78
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-58
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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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2502.83
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1772.95
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41
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8367.87
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4096.14
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104
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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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633.32
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621.94
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2
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3488.86
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1423.64
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145
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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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1869.51
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1151.01
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62
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4879.01
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2672.50
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83
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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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16.4
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10.1
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14.3
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7.8
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8.8
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7.5
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Adj BV (Rs)
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111.5
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97.5
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111.5
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97.5
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100.9
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83.2
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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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