Bank of India Q2 Results: Net Profit Climbs 52% YoY To Rs.1,458 Cr, NII Up 13%

The state-owned lender Bank of India (BoI) on Saturday released financial results for the quarter ended 30th September 2023. According to the bank, its net profit climbed by 52% year on year to Rs. 1,458 Cr in Q2FY24 as opposed to Rs. 960 Cr in Q2FY23. From Rs. 3,374 Cr in Q2FY23 to Rs. 3,756 Cr in Q2FY24, its operating profit jumped by 11% YoY. Net Interest Income (NII) for the bank climbed by 13% YoY to Rs. 5,740 Cr in the quarter under review from Rs. 5,083 Cr in the same quarter last year.

Bank of India said that its Non-Interest Income climbed by 19% YoY to Rs. 1,688 Cr in Q2FY24 as opposed to Rs. 1,417 Cr in Q2FY23. According to the bank, in Q2FY24, its domestic Net Interest Income (NII) ratio was 3.47%. On a sequential basis, it climbed by 10 basis points from 3.37% in Q1FY24. The bank's return on equity (RoE) soared by 230 basis points to 12.64% in Q2FY24 from 10.34% in Q2FY23, while its return on assets (RoA) rose by 20 basis points YoY to 0.67% in Q2FY24 from 0.47% in Q2FY23.

According to BoI, its cost-to-income ratio (Global) stood at 49.44% in Q2FY24 while its slippage reached 0.34% in Q2FY24. BoI's credit cost improved to 0.54% in Q2FY24 against 0.60% in Q2FY23. The bank said its yield on advances (Global) improved to 8.54% in Q2FY24 against 7.21% in Q2FY23 while cost of deposits (Global) stood at 4.49% in Q2FY24 against 3.54% in Q2FY23, as per a stock exchange filing.

According to the Bank of India, domestic deposits rose 8.61% YoY from Rs. 5,51,401 Cr in Q2FY23 to Rs. 5,98,850 Cr in Q2FY24. Domestic CASA also climbed by 6.08% year on year from Rs. 2,42,230 Cr in the year-ago quarter to Rs. 2,56,956 Cr during the quarter under review. The bank's CASA ratio stood at 43.13% in the July-September 2023 quarter.

Domestic advances made by the bank rose from Rs. 4,12,233 Cr in Q2FY23 to Rs. 4,52,641 Cr in Q2FY24 or up by 9.80% YoY. At Rs. 2,51,197 Cr or 12.32% YoY, RAM Advances now make up 55.50% of advances. Both the bank's retail and agricultural credit increased by 10.82% and 14.65%, respectively, to Rs.1,00,260 Cr and Rs.77,206 Cr in Q2FY24.

On the asset quality front, Gross NPA declined by 8.28% QoQ from Rs.34,582 Cr in the previous quarter to Rs.31,719 Cr in the quarter under review while BoI's net NPA declined by 1.73% QoQ from Rs.8,119 Cr in Q1FY24 to Rs.7,978 Cr in Q2FY24.

According to BoI, its net NPA ratio grew by 11 bps from 1.65% to 1.54% and its GNPA ratio rose by 83 bps from 6.67% in Q1FY24 to 5.84% in Q2FY24. The Provision Coverage Ratio (PCR) climbed from 89.52% in the June 23 quarter to 89.58% in the September 23 quarter.

The bank's total capital adequacy ratio (CRAR) was 15.63% as of September 30, 2023, down from 15.60% in the June 23 quarter. As of September 30, 23, the Bank has resulted in 5135 domestic branches.