Bank Of India April-June Profit Up 32% On Year

Bank of India's net profit for the April-June quarter rose over 32% on year to ₹22.52 billion, driven by strong other income, particularly trading gains. However, profit was down 14% sequentially.

Other income surged over 66% to ₹21.66 billion, with trading gains jumping fivefold to ₹8.20 billion. Compared to the March quarter, other income was 37% lower as treasury gains had spiked in that period.

Provisions fell 15% on year to ₹10.96 billion, offering further support to the bottom line. Of this, ₹11.04 billion was provisioned for non-performing assets, down 9% on year.

Net interest income dipped 3% on year to ₹60.68 billion, and net interest margin narrowed 52 bps on year to 2.55%. The cost of funds dropped to 4.66% from 4.73% in the March quarter and 4.81% a year ago.

Total income grew over 12% on year to ₹205.18 billion, but was down 5.7% sequentially.

Global advances rose over 12% on year to ₹6.72 trillion, while global deposits were up over 9% to ₹8.34 trillion as of Jun. 30. Retail, agriculture and MSME loans rose 17% to ₹3.28 trillion, with retail loans alone up 20% to ₹1.38 trillion.

Domestic deposits rose 9.6% on year to ₹7.10 trillion. Term deposits reached ₹4.25 trillion, up from ₹3.69 trillion a year ago. CASA ratio fell to 39.88% from 42.68% last year. The cost of deposits dropped 13 bps sequentially and 3 bps on year.

The cost-to-income ratio for the quarter was 51.31%, marginally lower on year, but higher than the March quarter. Capital adequacy ratio under Basel-III norms stood at 17.39%, down from 17.77% in March, but up from 16.18% a year ago.

Other income also included ₹3.22 billion from recovery of written-off accounts. Gross NPA ratio fell 35 bps on quarter and 170 bps on year to 2.92%, while net NPA ratio dropped 7 bps sequentially to 0.75%. Provision coverage improved to 92.94%.

Slippage ratio was 0.33%, up 1 bp sequentially and down 2 bps on year. Fresh slippages stood at ₹20.80 billion, while upgrades were ₹5.73 billion. Write-offs totalled ₹24.59 billion, higher than both the previous quarter and the year-ago period.