Bank of India (BoI) on Friday posted a 35% jump in its net profit to Rs 2,517 crore for the December quarter on account of a decline in bad loans, rise in net interest income and income from treasury operations. The lender had reported a net profit of Rs 1,870 crore in the year-ago period.
Shares of BoI closed 1.5% lower at Rs 98.3 on the BSE.
The growth in the profit was aided by core operations, NII, cross-selling and gains from sale of investments. The bank is maintaining its guidance for a net profit of Rs 8,000 crore for the current financial year, said R Karnatak, managing director and chief executive officer, in the post-results media interaction.
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The NII expanded 11% Y-o-Y to Rs 6,070 crore in Q3FY25. However, the net interest margin (NIM) moderated to 2.80%, from 2.85% in Q3FY24. The bank has guided the NIM at the range of 2.85-2.89% for the current fiscal.
Non-interest income, including fees, commissions, treasury revenues and recoveries, rose 46% to Rs 1,746 crore. Of this, profit from the sale and revaluation of investments stood at Rs 266 crore. Commissions, exchange, and brokerage grew 16% to Rs 462 crore. Recovery from written-off accounts increased 16% to Rs 391 crore.
Loans and advances grew 15.3% to Rs 5.65 lakh crore in the latest quarter. Retail advances rose 21.22% to Rs 1.27 lakh crore. Deposits rose 12.29% to Rs 7.07 lakh crore. The share of low-cost current account and savings account (CASA) fell to 41.05% in December 2024 from 43.88% a year ago.
On the asset quality front, provisions for non-performing assets (NPAs) declined to Rs 602.5 crore in Q3FY25 compared with Rs 612.0 crore in Q3FY24. Gross NPAs declined to 3.69% from 5.35% a year ago, while net NPAs fell to 0.85% from 1.41%.
The provision coverage ratio (PCR), including written-off accounts, stood at 92.48%, compared with 89.95% a year ago.
