Bank Of India Q3 Results – Net Profit Improves 62% to Rs. 1,870 Crore

KEY HIGHLIGHTS (Q3FY24)

Global Business Growth:

Global Business increased by 9.60% Year-on-Year (YoY).

Deposit Growth:

Global Deposits saw a significant increase of 8.28% YoY.

Advances Expansion:

Gross Advances surged by 11.29% YoY.

Composition of Advances:

RAM (Retail, Agriculture, MSME) Advances exhibited robust growth, increasing by 13.61% YoY, constituting 55.24% of Advances.

Retail Credit Expansion:

Retail Credit witnessed notable growth of 15.40% YoY.

Agriculture Credit Growth:

• Agriculture Credit showed substantial growth, increasing by 14.23% YoY.

MSME Credit Expansion:

MSME Credit expanded by 10.61% YoY.

CASA Deposits:

CASA (Current Account Savings Account) deposits recorded a healthy growth of 5.92% YoY, with the CASA ratio standing at 43.88%.

Profitability Improvement:

Net Profit surged by an impressive 62% YoY to Rs. 1,870 Crore.

Yield Improvement on Advances:

• Yield on Advances (Global) witnessed a notable improvement of 70 basis points (bps) YoY.
• Yield on Advances (Domestic) also saw a significant improvement, rising by 53 bps YoY.

Asset Quality Enhancement:

• Gross Non-Performing Assets (NPA) ratio experienced a substantial decline of 231 bps YoY.
• Net NPA ratio decreased by 20 bps YoY.

Provision Coverage Ratio (PCR):

Provision Coverage Ratio stood strong at 89.95%.

Capital Adequacy Ratio (CAR):

Capital Adequacy Ratio (CAR) stood at a healthy 16.06%, with the Common Equity Tier-1 (CET-1) ratio at 13.16%.

Additional Read: Q3 Results Dashboard

Profitability: Relationship beyond banking Q3-FY24:

Net Profit:

Net Profit for the quarter saw a significant improvement of 62% Year-on-Year (YoY), reaching Rs. 1,870 Crore for Q3FY24 compared to Rs. 1,151 Crore in Q3FY23.

Sequentially, Net Profit improved by 28% from Rs. 1,458 Crore in Q2FY24.

Operating Profit:

Operating Profit stood at Rs. 3,004 Crore for Q3FY24 against Rs. 3,652 Crore in Q3FY23 and Rs. 3,756 Crore in Q2FY24.

Net Interest Income (NII):

Net Interest Income (NII) amounted to Rs. 5,463 Crore for Q3FY24 compared to Rs. 5,595 Crore for Q3FY23 and Rs. 5,740 Crore in Q2FY24.

Non-Interest Income:

Non-Interest Income stood at Rs. 1,193 Crore for Q3FY24 against Rs. 1,432 Crore for Q3FY23 and Rs. 1,688 Crore in Q2FY24.

9 Months ended FY24:

Net Profit:

Net Profit surged by 83% YoY, reaching Rs. 4,879 Crore for the 9-month period ended FY24 compared to Rs. 2,672 Crore in the corresponding period of the previous year.

Operating Profit:

Operating Profit witnessed a growth of 14% YoY, standing at Rs. 10,511 Crore for the 9-month period ended FY24 against Rs. 9,209 Crore in the corresponding period of the previous year.

Net Interest Income (NII):

Net Interest Income (NII) registered a robust increase of 16% YoY, amounting to Rs. 17,117 Crore for the 9-month period ended FY24 compared to Rs. 14,751 Crore in the corresponding period of the previous year.

Non-Interest Income:

Non-Interest Income increased by 9% YoY, reaching Rs. 4,344 Crore for the 9-month period ended FY24 against Rs. 4,001 Crore in the corresponding period of the previous year.

Ratios (Q3-FY24):

Net Interest Margin (NIM):

• NIM (Global) stood at 2.85% in Q3FY24 compared to 3.28% in Q3FY23 and 3.08% in Q2FY24.
• NIM (Domestic) was 3.21% in Q3FY24 compared to 3.72% in Q3FY23 and 3.47% in Q2FY24.

Return on Assets (RoA):

RoA (Global) improved by 27 basis points (bps) YoY to 0.82% in Q3FY24 compared to 0.55% in Q3FY23. Sequentially, it improved by 15 bps from 0.67% in Q2FY24.

Cost to Income Ratio:

Cost to Income ratio (Global) stood at 54.87% in Q3FY24 compared to 48.03% in Q3FY23 and 49.44% in Q2FY24.

Yield on Advances:

Yield on Advances (Global) improved by 70 bps YoY to 8.37% in Q3FY24 compared to 7.67% in Q3FY23 and 8.54% in Q2FY24.

Cost of Deposits:

Cost of Deposits (Global) stood at 4.62% in Q3FY24 compared to 3.72% in Q3FY23 and 4.49% in Q2FY24.

Ratios (9 Months ended-FY24):

Net Interest Margin (NIM):

• NIM (Global) improved by 2 bps YoY to 2.98% in 9M-FY24 compared to 2.96% in 9M-FY23.
• NIM (Domestic) stood at 3.35% in 9M-FY24 compared to 3.37% in 9M-FY23.

Return on Assets (RoA):

RoA improved by 28 bps YoY to 0.72% in 9M-FY24 compared to 0.44% in 9M-FY23.

Return on Equity (RoE):

RoE improved by 434 bps YoY to 13.75% in 9M-FY24 compared to 9.41% in 9M-FY23.

Cost to Income Ratio:

Cost to Income ratio (Global) stood at 51.02% in 9M-FY24 compared to 50.89% in 9M-FY23.

Credit Cost:

Credit Cost improved by 37 bps to 0.54% in 9M-FY24 compared to 0.91% in 9M-FY23.

Yield on Advances:

Yield on Advances (Global) improved by 117 bps to 8.34% in 9M-FY24 compared to 7.17% in 9M-FY23.

Cost of Deposits:

Cost of Deposits (Global) stood at 4.44% in 9M-FY24 compared to 3.58% in 9M-FY23.

Business:

Global Business Growth:

Global Business increased by 9.60% Year-on-Year (YoY), rising from Rs. 11,61,441 Crore in December 2022 to Rs. 12,72,887 Crore in December 2023. Year-to-Date (YTD) Growth stands at 7.38%.

Global Deposits:

Global Deposits saw a notable increase of 8.28% YoY, climbing from Rs. 6,53,691 Crore in December 2022 to Rs. 7,07,827 Crore in December 2023. YTD Growth is recorded at 5.71%.

Global Advances:

Global Advances surged by 11.29% YoY, reaching Rs. 5,65,060 Crore in December 2023 compared to Rs. 5,07,750 Crore in December 2022. YTD Growth stands at 9.54%.

Overseas Business:

Overseas Deposits increased by 12.07% YoY to Rs. 1,08,690 Crore, while Overseas Advances increased by 10.99% YoY to Rs. 90,047 Crore in December 2023.

Domestic Deposits:

Domestic Deposits witnessed a growth of 7.62% YoY, rising from Rs. 5,56,707 Crore in December 2022 to Rs. 5,99,137 Crore in December 2023. YTD Growth is recorded at 5.66%.

CASA Deposits:

Domestic CASA deposits increased by 5.92% YoY, reaching Rs. 2,61,335 Crore in December 2023 from Rs. 2,46,718 Crore in December 2022. CASA ratio stood at 43.88%, with YTD Growth of CASA Deposits at 3.64%.

Domestic Advances:

Domestic Advances showed a robust growth of 11.34% YoY, amounting to Rs. 4,75,012 Crore in December 2023 compared to Rs. 4,26,622 Crore in December 2022. YTD Growth stands at 10.05%.

Composition of Advances (RAM):

RAM (Retail, Agriculture, MSME) Advances increased by 13.61% YoY to Rs. 2,62,390 Crore, constituting 55.24% of Advances in December 2023. YTD Growth stands at 10.30%.

Credit Segments Growth:

• Retail Credit grew by 15.40% YoY to Rs. 1,05,445 Crore in December 2023, with YTD Growth recorded at 11.33%.
• Agriculture Credit grew by 14.23% YoY to Rs. 80,345 Crore in December 2023, with YTD Growth recorded at 10.99%.
• MSME Credit grew by 10.61% YoY to Rs. 76,600 Crore in December 2023, with a negative YTD Growth of -8.23%.

Asset Quality:

Non-Performing Assets (NPA):

• Gross NPA declined by 22.24% YoY to Rs. 30,237 Crore in December 2023 from Rs. 38,885 Crore in December 2022.
• Net NPA declined marginally by 0.25% YoY to Rs. 7,627 Crore in December 2023 from Rs. 7,646 Crore in December 2022.
• GNPA ratio improved by 231 basis points (bps) from 7.66% in December 2022 to 5.35% in December 2023.
• Net NPA ratio improved by 20 bps from 1.61% in December 2022 to 1.41% in December 2023.

Provision Coverage Ratio (PCR):

Provision Coverage Ratio (PCR) stood at 89.95% in December 2023 compared to 90.27% in December 2022.

Capital Adequacy:

Capital Adequacy Ratio (CAR):

• Capital Adequacy Ratio (CRAR) was at 16.06% as on December 31, 2023, compared to 15.60% in December 2022.
• Common Equity Tier-1 (CET-1) ratio stood at 13.16% as on December 2023.

Priority Sector:

Priority Sector Advances:

• Priority Sector Advances increased by 10.51% YoY and achieved 43.62% of Adjusted Net Bank Credit (ANBC) as on December 2023.
• Agricultural advances achieved 19.72% of ANBC.
• Advances to Small & Marginal Farmers achieved 12.68% of ANBC in December 2023 against the regulatory norm of 10%.
• Advances to Weaker Sections achieved 15.82% of ANBC in December 2023 against the regulatory norm of 12%.

Additional Check: Bank Of India Share Price

About Bank of India

Bank of India (BOI) is an Indian public sector bank that was founded in 1906 and is headquartered in Mumbai. It offers a range of products and services for personal and business customers, such as accounts, loans, cards, insurance, mutual funds, and more. It has over 4,000 branches in India and 29 overseas branches in various countries. It is one of the founding members of SWIFT, a global network for financial transactions. It celebrated its 100th anniversary in 2006.

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Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/2fb24445-2c48-40ae-a189-804a86a1362e.pdf