Bank of India reports 10% increase in first quarter net profit at ₹1,703 crore

Bank of India reported a 10 per cent increase in first quarter net profit at ₹1,703 crore despite rise in non-tax provisions, including for loan loss and standard assets, as moderate growth in net interest income and write-back in provision for non-performing investments supported the bottomline.

The public sector bank had reported a net profit of ₹1,551 crore in the year-ago quarter.

Net interest income (difference between interest earned and interest expended) was up about 6 per cent y-o-y at ₹6,275 crore (₹5,915 crore in the year-ago quarter).

Other income, including fee-based income, treasury income and recovery in written-off accounts, declined about 1 per cent y-o-y to ₹1,302 crore (₹1,462 crore).

Net interest margin (interest income — interest expense/total assets) rose to 3.07 per cent from 3.03 per cent a year ago.

Loan loss provisions jumped 56.5 per cent to ₹1,216 crore (₹777 crore). Provisions for standard assets & others soared 224 per cent to ₹359 crore (₹111 crore). The bank received a higher provision write-back on non-performing investment of ₹282 crore (₹63 crore).

Gross non-performing assets (GNPAs) position improved to 4.62 per cent of gross advances as at June-end 2024 against 6.67 per cent as at June-end 2023. Net NPAs position too improved to 0.99 per cent of net advances against 1.65 per cent

Global advances increased by 15.82 per cent y-o-y to ₹6,00,264 crore as at June-end 2024. Global deposits rose by 9.74 per cent y-o-y to stand at ₹7,64,396 crore.