Bank of India Q3FY25 results: Net profit rises 35% to Rs 2,517 crore

Sequentially, the Mumbai-based lender's net profit rose by 6 per cent from Rs 2,374 crore in June 2024 (Q2FY25). Its stock closed 1.5 per cent lower at Rs 98.3 per share on BSE

(This report has been updated) 

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  Public sector lender Bank of India’s (BOI) net profit rose by 35 per cent year-on-year (Y-o-Y) to Rs 2,517 crore during the third quarter ended (Q3FY25), aided by better net interest income (NII) and gains from treasury operations.

 

Sequentially, the Mumbai-based lender’s net profit rose by 6 per cent from Rs 2,374 crore in September quarter of 2024. Its stock closed 1.5 per cent lower at Rs 98.3 per share on BSE ahead of the results, which were announced post market hours.

 

R Karnatak, the managing director and chief executive officer, in a post-results media interaction, said the profit growth in Q3 reflects contributions from core operations — NII as well as commissions, cross-selling, and gains from the sale of investments. The bank is maintaining its guidance for a net profit of Rs 8,000 crore for the current financial year (FY25).

 

 

The bank said its NII expanded 11 per cent Y-o-Y to Rs 6,070 crore in Q3FY25 compared to Rs 5,463 crore in the same quarter of the previous year. However, the net interest margin (NIM) moderated to 2.80 per cent in Q3FY25 from 2.85 per cent in Q3FY24. The bank has guided for NIMs to be in the range of 2.85–2.89 per cent for FY25.

 

Non-interest income, including fees, commissions, treasury revenues, and recoveries, rose by 46 per cent Y-o-Y to Rs 1,746 crore. Of this, profit from the sale and revaluation of investments stood at Rs 266 crore in Q3FY25, compared to a loss of Rs 129 crore in Q3FY24. Commissions, exchange, and brokerage grew by 16 per cent to Rs 462 crore. Recovery from written-off accounts increased by 16 per cent Y-o-Y to Rs 391 crore.

 

The lender’s provisions for non-performing assets (NPAs) declined to Rs 602.5 crore in Q3FY25 compared to Rs 612.0 crore in Q3FY24. The asset quality profile improved, with gross NPAs declining to 3.69 per cent in December 2024 from 5.35 per cent in December 2023. Net NPAs also declined to 0.85 per cent in December 2024 from 1.41 per cent in December 2023. The provision coverage ratio (PCR), including written-off accounts, stood at 92.48 per cent in December 2024, compared to 89.95 per cent a year ago.

 

BOI’s advances grew by 15.3 per cent Y-o-Y to Rs 5.65 trillion in Q3FY25. Retail advances grew by 21.22 per cent Y-o-Y to Rs 1.27 trillion in December 2024.

 

Total deposits increased by 12.29 per cent Y-o-Y to Rs 7.07 trillion. The share of low-cost deposits — current account and savings account (CASA) — declined to 41.05 per cent in December 2024 from 43.88 per cent a year ago.

 

In domestic business, BOI expects advances to grow by 14–15 per cent Y-o-Y and deposits by 13–14 per cent by the end of March 2025 (FY25), Karnatak said.

 

The bank’s capital adequacy stood at 16 per cent, with Common Equity Tier-1 (CET-1) at 12.96 per cent at the end of December 2024.