Bank of India reports stellar growth in Q3 FY24, net profit soars by 62%

Bank of India, one of the country’s foremost banking institutions, has released its financial performance for the third quarter ending December 31, 2023. The un-audited results, approved by the Board of Directors during their meeting in Mumbai on February 2, 2024, showcase a significant upward trajectory across all key financial indicators, reflecting the bank’s robust growth strategy and operational efficiency.

The bank reported a notable 9.60% year-on-year (YoY) increase in Global Business, with Gross Advances and Global Deposits rising by 11.29% and 8.28%, respectively. Notably, the Retail, Agriculture, and MSME (RAM) Advances segment witnessed a 13.61% growth, making up 55.24% of total Advances. The CASA (Current Account Savings Account) deposits grew by 5.92%, with the CASA ratio standing at 43.88%.

In terms of profitability, Bank of India achieved a remarkable 62% YoY increase in Net Profit, amounting to Rs.1,870 Crore. This growth is supported by an improved Yield on Advances, both globally and domestically, by 70 and 53 basis points (bps) respectively. The bank’s asset quality also saw considerable improvement, with the Gross NPA ratio down by 231 bps and the Net NPA ratio down by 20 bps YoY. Additionally, the Provision Coverage Ratio (PCR) was reported at 89.95%.

Over the nine months ending in FY24, Bank of India’s Net Profit surged by 83% YoY, reaching Rs.4,879 Crore. The Operating Profit and Net Interest Income (NII) also saw impressive increases of 14% and 16% YoY, respectively. The bank’s return on assets and equity (RoA and RoE) improved significantly, demonstrating the efficacy of its strategic initiatives and operational excellence.

The bank’s Global Business expanded by 9.60% YoY, with notable increases in Domestic and Overseas Deposits and Advances. The Digital Banking segment showed remarkable growth, with increases in Internet and Mobile Banking users, as well as a significant uptick in UPI users. The bank’s branch network remains extensive, with a balanced distribution across rural, semi-urban, urban, and metro areas.

With its Q3 FY24 results, Bank of India has set new benchmarks in the banking sector, demonstrating exceptional growth in a challenging economic environment. The bank’s commitment to digital transformation, coupled with its focus on sustainable growth in the RAM segment, positions it well for future success. As the financial landscape evolves, Bank of India’s strategic approach and operational resilience are expected to drive continued growth and profitability.