BOI's Q1 net profit rises by 10% to ₹1,703cr
Bank of India (BOI), a state-owned entity, has reported a 10% year-on-year (YoY) increase in its net profit for the first quarter ending June 2024. The bank's net profit for this period stood at ₹1,703 crore, up from ₹1,551 crore during the same period last year. This growth was primarily driven by a reduction in tax expenses. BOI also reported a 6% YoY increase in its net interest income (NII) for Q1 FY25.
NII increases by 6%
The NII rose to ₹6,275 crore from ₹5,915 crore in Q1 FY24. This increase was largely due to a significant growth in advances. However, the bank's non-interest income saw a decline of 12% YoY to ₹1,302 crore during this period.
BOI's net interest margin and provisions
BOI's net interest margin for Q1 FY25 was recorded at 3.07%, reflecting an increase of 14 basis points from the previous quarter. On a YoY basis, the bank's provisions rose by 57% but saw a sequential decrease of 29% to ₹1,293 crore in Q1 FY25. Gross slippages for this quarter were reported at ₹2,973 crore, which included contributions from various sectors such as MSMEs, retail and agriculture.
Improved asset quality and growth in advances
BOI's asset quality improved during Q1 FY25 with the gross non-performing assets (NPAs) ratio standing at 4.62%, down 36 basis points from the preceding quarter. The bank's provision coverage ratio (PCR) also saw an improvement to 92.11% in Q1 FY25, up from 90.59% in Q4 FY24. Additionally, the lender reported a YoY increase of 15.82% and a sequential rise of 2.50% in advances.
