Bank of India Announces Financial Results For Quarter/Half Year Ended 30th Sept. 2023

KEY HIGHLIGHTS (Q2FY24)

Net Profit increased by 52% YoY to Rs.1,458 Cr.

Operating Profit increased by 11% YoY to Rs.3,756 Cr.

Net Interest Income increased by 13% YoY to Rs.5,740 Cr.    NIM (Global) improved by 4 bps YoY to 3.08%.

Yield on Advances (Dom.) improved by 133 bps YoY.    Gross NPA ratio down by 267 bps YoY.

Net NPA ratio down by 38 bps YoY.

Provision Coverage Ratio (PCR) improved by 62 bps YoY.    CRAR stood at 15.63%, with CET-1 ratio at 12.60%.

Global Business increased by 9.25%.

Global Deposits increased by 8.68% YoY.    Gross Advances increased by 10% YoY.

RAM Advances grew by 12.32% YoY and it constitutes 55.50% of Advances.    Retail Credit grew by 14.65% YoY.

Agriculture Credit grew by 10.82% YoY.    MSME Credit grew by 10.82% YoY.

CASA deposits increased by 6.08% YoY and CASA ratio at 43.13%.

Profitability:

Q2-FY24:

*   Net Profit increased by 52% YoY and stood at Rs.1,458 Cr in Q2FY24 against Rs.960 Cr in Q2FY23.

*   Operating Profit improved by 11% YoY and stood at Rs.3,756 Cr in Q2FY24 against Rs.3,374 Cr in Q2FY23.

*   Net Interest Income (NII) improved by 13% YoY and stood at Rs.5,740 Cr in Q2FY24 against Rs.5,083 Cr for Q2FY23.

*   Non-Interest Income improved by 19% YoY and stood at to Rs.1,688 Cr in Q2FY24 against Rs.1,417 Cr in Q2FY23.

H1-FY24:

*   Net Profit increased by 98% YoY and stood at Rs.3,009 Cr in H1FY24 against Rs.1,521 Cr in H1FY23.

*   Operating Profit improved by 35% YoY and stood at Rs.7,508 Cr in H1FY24

against Rs.5,557 Cr in H1FY23.

*   Net Interest Income (NII) increased by 27% YoY and stood at Rs.11,653 Cr

in H1FY24 against Rs.9,156 Cr in H1FY23.

*   Non-Interest Income increased by 23% YoY and stood at Rs.3,150 Cr in H1FY24 against Rs.2,569 Cr in H1FY23.

Ratios (Q2-FY24):

*   NIM (Global) improved by 4 bps YoY to 3.08% in Q2FY24 against 3.04% in Q2FY23. It improved by 5 bps on a sequential basis from 3.03% in Q1FY24.

*   NIM (Domestic) stood at 3.47% in Q2FY24. It improved by 10 bps on a sequential basis from 3.37% in Q1FY24.

*   Return on Assets (RoA) improved by 20 bps YoY to 0.67% in Q2FY24 against 0.47% in Q2FY23

*   Return on Equity (RoE) improved by 230 bps to 12.64% in Q2FY24, against 10.34% in Q2FY23.

*   Cost to Income ratio (Global) stood at 49.44% in Q2FY24.

*  Slippage ratio stood at 0.34% in Q2FY24.

*   Credit Cost improved to 0.54% in Q2FY24 against 0.60% in Q2FY23.

*   Yield on Advances (Global) improved to 8.54% in Q2FY24 against 7.21% in Q2FY23.

*   Cost of Deposits (Global) stood at 4.49% in Q2FY24 against 3.54% in Q2FY23.

Ratios (H1-FY24):

*   NIM (Global) improved by 25 bps YoY to 3.05% in H1FY24 against 2.80% in H1FY23.

*   NIM (Domestic) improved by 23 bps YoY to 3.42% in H1FY24 against 3.19% in H1FY23.

*   Return on Assets (RoA) improved by 30 bps YoY to 0.68% in H1FY24 against 0.38% in H1FY23.

*   Return on Equity (RoE) improved by 545 bps to 13.72% in H1FY24, against 8.27% in H1FY23.

*   Cost to Income ratio (Global) improved by 332 bps to 49.29% in H1FY24 against 52.61% in H1FY23.

*   Credit Cost improved by 29 bps to 0.58% in H1FY24 against 0.87% in H1FY23.

*   Yield on Advances (Global) improved by 142 bps to 8.32% in H1FY24 against 6.90% in H1FY23.

*   Cost of Deposits (Global) stood at 4.35% in H1FY24 against 3.51% in H1FY23.

Business:

*   Global Business increased by 9.25% YoY from Rs.11,41,356 Cr in Sep’22 to Rs.12,46,879 Cr in Sep’23.

*   Global Deposits increased by 8.68% YoY from Rs. 6,47,541 Cr in Sep’22 to Rs. 7,03,751 Cr in Sep’23.

*   Global Advances increased by 10% YoY from Rs. 4,93,814  Cr in Sep’22 to Rs. 5,43,128 Cr in Sep’23.

*   Domestic Deposits increased by 8.61% YoY from Rs. 5,51,401 Cr in Sep’22 to Rs.5,98,850 Cr in Sep’23.

*   Domestic CASA went up by 6.08% YoY from Rs.2,42,230 Cr in Sep’22 to Rs.2,56,956 Cr in Sep’23 and CASA ratio stood at 43.13%.

*   Domestic Advances increased by 9.80% YoY from Rs. 4,12,233 Cr in Sep’22 to Rs. 4,52,641 Cr in Sep’23.

*   RAM Advances increased by 12.32% YoY to Rs.2,51,197 Cr, constituting to

55.50% of Advances.

*   Retail Credit grew by 14.65% YoY to Rs.1,00,260 Cr in Sep’23.

*   Agriculture Credit grew by 10.82% YoY to Rs.77,206 Cr in Sep’23.

*   MSME Credit grew by 10.82% YoY to Rs.73,731 Cr in Sep’23.

Asset Quality:

*   Gross NPA declined by 8.28% QoQ from Rs.34,582 Cr in Jun’23 to Rs.31,719 Cr in Sep’23.

*   Net NPA declined by 1.73% QoQ from Rs.8,119 Cr in Jun’23 to Rs.7,978 Cr in Sep’23.

*   GNPA ratio improved by 83 bps from 6.67% in Jun’23 to 5.84% in Sep’23.

*       Net NPA ratio improved by 11 bps from 1.65% in Jun’23 to 1.54% in Sep’23

Provision Coverage Ratio (PCR) stood at 89.58% in Sep’23 against 89.52% in Jun’23.

Capital Adequacy:

*   As on 30.09.2023, Bank's total Capital Adequacy Ratio (CRAR) was at 15.63% against 15.60% in Jun’23.

*   CET-1 ratio stood at 12.60% as on 30.09.23.

Priority Sector:

*   Priority Sector Advances increased by 9.25% YOY and achieved 42.95% of ANBC as on Sep’23. Agricultural advances achieved 19.31% of ANBC.

*   Advances to Small & Marginal Farmers achieved 12.48% of ANBC in Sep’23 against regulatory norm of 10%.

*   Advances to Weaker Sections achieved 15.53% of ANBC in Sep’23 against regulatory norm of 12%.

Digital Banking:

*   Internet Banking users: Increased to 8.66 million in Sep’23 from 8.28 million in Sep’22.

*   Mobile Banking users: Increased to 9.12 million in Sep’23 from 7.14 million in Sep’22.

*   Number of UPI users increased to 17.16 million in Sep’23 from 14.14 million in Sep’22.

Digital Products:

*   Bank has created end to end Digital products, viz. SB accounts on the deposit side and Mudra/KCC/Personal loan/pensioner loan on the loan segment.

*   Customers can open SB accounts and avail loans without visiting branch.

*   There are more than 15 products that will be rolled out in Q3 & Q4 of this year.

*   We are targeting at least Rs.10,000 Cr of business through Digital products by the end of this financial year.

Branch Network:

*   As on 30th Sep’23, the Bank has 5135 number of Domestic branches.

*   Rural: 1855 (36%), Semi-Urban: 1456 (29%), Urban: 830 (16%), Metro: 992 (19%).

Awards & Accolades:

*   ‘Shine and Succeed 2023’ award from PFRDA for performance in Atal Pension Yojana.

*   ‘Rise above the Rest 2023’ award from PFRDA for performance from 1st  July 2023 to 16th August 2023 in Atal Pension Yojana.