Bank of India Q3 FY25 PAT Surges 35% YoY to Rs 2,512 Cr, Strengthened by Robust Growth Across Key Metrics

Introduction:

Bank of India (BoI) has reported a stellar performance for the third zone of FY25, with a 35% year-on-12 months (YoY) increase in earnings after tax (PAT) to Rs 2,512 crore, up from Rs 1,869.Fifty one crore in Q3 FY24. The public quarter financial institution’s superb performance reflects its sturdy operational boom, decreased non-acting assets (NPAs), and a solid enlargement in both advances and deposits.

Key Highlights:

Surge in Profit and Income:: BoI’s standalone net profit rose 34.62% YoY to Rs 2,516.69 crore for Q3 FY25, a significant jump compared to the Rs 1,869.51 crore reported in the same quarter last year.

The bank’s total income increased by 21.61% YoY, reaching Rs 19,956.90 crore during the quarter, driven by strong operational performance and higher business volumes.

Strong Operational Performance: Profit before tax (PBT) showed a remarkable 35.8% YoY rise, reaching Rs 3,398.87 crore in Q3 FY25.

Operating profit increased by 23.26% YoY to Rs 3,702.57 crore, reflecting the bank’s ability to maintain healthy operational efficiencies.

Net interest income (NII) grew 11% YoY to Rs 6,070 crore, primarily supported by an increase in advances.

Bank of India Q3 FY25: Strong Profit Growth and Improved Asset Quality Drive Robust Performance:

Growth in Key Business Areas: Global business of the bank grew 13.62% YoY, reaching Rs 14,46,295 crore by December 2024. The growth was driven by a 15.30% increase in global advances, which reached Rs 6,51,507 crore.

Domestic advances stood at Rs 5,46,269 crore, up 15% YoY.

The bank’s domestic deposits grew 13.27% YoY, amounting to Rs 6,78,625 crore, with CASA (current account, savings account) deposits showing a 6.07% YoY increase to Rs 2,77,190 crore.

Improvement in Asset Quality: BoI made significant progress in improving its asset quality. Gross NPAs stood at Rs 24,048.48 crore as of December 31, 2024, a significant reduction from Rs 30,237.15 crore in the same period last year.

The bank’s gross NPA ratio improved by 166 bps to 3.69% from 5.35% a year ago. Net NPA ratio also saw an improvement, declining to 0.85% from 1.41% last year.

The provision coverage ratio (PCR) rose to 92.48% from 89.95% in December 2023, further indicating the bank’s strong provisions and ability to tackle asset quality challenges.

Market Reaction:

Despite the positive performance, Bank of India’s stock closed 1.50% lower at Rs 98.30 on January 24, 2025. The slight decline may reflect broader market conditions or investor sentiment, but the strong fundamentals demonstrated in the earnings report suggest resilience.

Conclusion:

Bank of India’s Q3 FY25 performance underscores its strong growth trajectory, particularly in key areas such as profit, advances, and asset quality. The bank’s ability to reduce NPAs while expanding its business is a clear indication of effective management and operational strength.

Moving forward, BoI appears well-positioned to continue benefiting from robust economic activity and a favorable banking environment.

FAQ:

Here are some frequently asked questions (FAQs) about Bank of India’s performance for the third quarter of FY25:

1. What was Bank of India’s PAT for Q3 FY25?

Bank of India reported a profit after tax (PAT) of Rs 2,512 crore for Q3 FY25, marking a 35% year-on-year (YoY) increase compared to Rs 1,869.51 crore in the same quarter of FY24.

2. How did Bank of India’s total income perform in Q3 FY25?

The total income of Bank of India increased by 21.61% YoY, reaching Rs 19,956.90 crore for the third quarter of FY25.

3. What was the increase in profit before tax (PBT) for Q3 FY25?

The bank’s profit before tax (PBT) surged by 35.8% YoY, amounting to Rs 3,398.87 crore in Q3 FY25.

4. How did the bank’s operating profit perform in Q3 FY25?

Operating profit saw a growth of 23.26% YoY, reaching Rs 3,702.57 crore in Q3 FY25, up from Rs 3,003.94 crore in Q3 FY24.

5. What was the growth in Bank of India’s Net Interest Income (NII)?

Net Interest Income (NII) for the quarter stood at Rs 6,070 crore, which is an 11% increase compared to Rs 5,463 crore in Q3 FY24.

6. How has Bank of India’s asset quality improved?

The bank made notable improvements in its asset quality:

Gross NPAs declined to Rs 24,048.48 crore from Rs 30,237.15 crore in December 2023.
The Gross NPA ratio improved by 166 bps to 3.69% from 5.35% last year.
Net NPA ratio also improved to 0.85% from 1.41% year-on-year.
The Provision Coverage Ratio (PCR) increased to 92.48% from 89.95% a year ago.

7. What was the growth in Bank of India’s global business?

Bank of India’s global business grew by 13.62% YoY, reaching Rs 14,46,295 crore by December 2024.

8. How did the bank’s domestic deposits perform?

Domestic deposits grew by 13.27% YoY to Rs 6,78,625 crore as of December 31, 2024. Additionally, the CASA (current account, savings account) deposits increased by 6.07% YoY.

9. What is the bank’s Capital Adequacy Ratio (CRAR)?

Bank of India’s capital adequacy ratio (CRAR) stood at 16.00% as of December 31, 2024, which is considered a solid position in terms of capital strength.

10. Did the stock price of Bank of India react positively to the results?

Despite the strong performance, the stock price of Bank of India closed 1.50% lower at Rs 98.30 on January 24, 2025. This may reflect broader market dynamics or investor sentiment rather than the company’s fundamentals.

11. Who owns Bank of India?

As of December 2024, the Government of India holds a 73.38% stake in Bank of India, making it the largest shareholder.

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