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What is the story about?
State-run Bank of India reported its June quarter results on Friday, July 24, with growth in core income and net profit, while asset quality improved sequentially.
The Mumbai-based lender's Net Interest Income (NII), or core income, rose 12.6% year-on-year to ₹6,833 crore from ₹6,068 crore in the corresponding quarter last year.
Bank of India's net profit for the June quarter increased 36.2% to ₹3,068 crore from ₹2,252 crore a year ago. The strong bottom-line growth was supported by healthy growth in core income, while provisions declined to ₹963.6 crore from ₹1,096 crore a year ago and ₹989.7 crore in the March quarter.
One of India's top 10 banks, Bank of India saw its asset quality improve on a sequential basis, with the Gross Non-Performing Asset (GNPA) ratio easing to 1.81% from 1.98% in the March quarter. The Net Non-Performing Asset (NNPA) ratio also improved to 0.51% from 0.56% in the previous quarter.
In absolute terms, Bank of India's gross NPA stood at ₹13,334 crore, compared with ₹13,962 crore at the end of March, while net NPA declined to ₹3,654 crore from ₹3,885 crore in the previous quarter.
The lender's overall business grew 16.6% year-on-year to ₹17.56 lakh crore at the end of the June quarter. Global deposits rose 14.9% to ₹9.58 lakh crore, while global advances increased 18.6% to ₹7.98 lakh crore. Domestic advances grew 19.2%, led by healthy traction in retail, agriculture and MSME lending.
Retail, agriculture and MSME (RAM) advances rose 19.8% from a year ago to ₹3.93 lakh crore and accounted for 58.3% of the bank's domestic gross advances. Within the segment, retail credit expanded 20.6%, MSME advances grew 19.3%, and agriculture credit increased 18.9% year-on-year.
Operating profit rose 26% year-on-year to ₹5,051 crore, while non-interest income increased 19.1% to ₹2,579 crore. The bank's provision coverage ratio improved to 93.83% from 92.94% a year earlier, while the slippage ratio eased to 0.24% from 0.33%.
Bank of India's capital adequacy ratio under Basel III stood at 18.69% at the end of June, with the Common Equity Tier-I (CET-1) ratio improving to 15.97%. Return on assets rose to 1.01%, while return on equity improved to 16.12%.
The bank had shared its business update for the quarter earlier this month. Domestic deposits increased 16.2% year-on-year to ₹8.25 lakh crore, while gross domestic advances grew 19% to ₹6.73 lakh crore. Global business rose 16.6% from a year ago to ₹17.55 lakh crore.
Shares of Bank of India are trading 0.35% higher after the results announcement at ₹142.70. The stock is still down 3% so far for the year.
Also Read: Here's why shares of Max India gained up to 10% on Friday
How Did Bank of India Fare In Q1?
The Mumbai-based lender's Net Interest Income (NII), or core income, rose 12.6% year-on-year to ₹6,833 crore from ₹6,068 crore in the corresponding quarter last year.
Bank of India's net profit for the June quarter increased 36.2% to ₹3,068 crore from ₹2,252 crore a year ago. The strong bottom-line growth was supported by healthy growth in core income, while provisions declined to ₹963.6 crore from ₹1,096 crore a year ago and ₹989.7 crore in the March quarter.
One of India's top 10 banks, Bank of India saw its asset quality improve on a sequential basis, with the Gross Non-Performing Asset (GNPA) ratio easing to 1.81% from 1.98% in the March quarter. The Net Non-Performing Asset (NNPA) ratio also improved to 0.51% from 0.56% in the previous quarter.
In absolute terms, Bank of India's gross NPA stood at ₹13,334 crore, compared with ₹13,962 crore at the end of March, while net NPA declined to ₹3,654 crore from ₹3,885 crore in the previous quarter.
The lender's overall business grew 16.6% year-on-year to ₹17.56 lakh crore at the end of the June quarter. Global deposits rose 14.9% to ₹9.58 lakh crore, while global advances increased 18.6% to ₹7.98 lakh crore. Domestic advances grew 19.2%, led by healthy traction in retail, agriculture and MSME lending.
Retail, agriculture and MSME (RAM) advances rose 19.8% from a year ago to ₹3.93 lakh crore and accounted for 58.3% of the bank's domestic gross advances. Within the segment, retail credit expanded 20.6%, MSME advances grew 19.3%, and agriculture credit increased 18.9% year-on-year.
Operating profit rose 26% year-on-year to ₹5,051 crore, while non-interest income increased 19.1% to ₹2,579 crore. The bank's provision coverage ratio improved to 93.83% from 92.94% a year earlier, while the slippage ratio eased to 0.24% from 0.33%.
Bank of India's capital adequacy ratio under Basel III stood at 18.69% at the end of June, with the Common Equity Tier-I (CET-1) ratio improving to 15.97%. Return on assets rose to 1.01%, while return on equity improved to 16.12%.
The bank had shared its business update for the quarter earlier this month. Domestic deposits increased 16.2% year-on-year to ₹8.25 lakh crore, while gross domestic advances grew 19% to ₹6.73 lakh crore. Global business rose 16.6% from a year ago to ₹17.55 lakh crore.
Shares of Bank of India are trading 0.35% higher after the results announcement at ₹142.70. The stock is still down 3% so far for the year.
Also Read: Here's why shares of Max India gained up to 10% on Friday
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