Bank of India(BOI) Q3 Net profit rises 34.6% , NII up 11% YoY; Asset quality improves

On Friday, January 24, Bank of India released its October-December quarter results for fiscal 2024-25 (Q3FY25), showing a 34.6% increase in net profit to Rs.2,516.7 crore from Rs.1,869.5 crore during the same period the previous year. 

Net interest income (NII), or the difference between interest earned and paid, for the public sector bank (PSB) increased 11.1% to Rs.6,070.3 crore in the December quarter from Rs.5,463.5 crore.

With net profit increasing 35% year over year to Rs.2,517 crore from Rs.1,870 crore in Q3 FY24, Bank of India (BoI) has produced a strong performance for Q3 FY25. The bank's net profit increased by 6% on a sequential basis from Rs.2,374 crore in Q2 FY25. Despite being less than the Rs.4,147 crore recorded in Q2 FY25, operating profit showed a strong 23% YoY rise, hitting Rs.3,703 crore.

Net Interest Income (NII) for the quarter climbed 11% YoY to Rs.6,070 crore, compared to Rs.5,463 crore in Q3 FY24, and was slightly higher than Rs.5,986 crore in the preceding quarter. Although it was less than Rs.2,518 crore in Q2 FY25, NII increased 46% YoY to Rs.1,746 crore.

Also Read - Quarterly Results of all banks for Q3FY25

Although operating expenses decreased sequentially from Rs.4,355 crore in Q2 FY25, they increased from Rs.3,653 crore in Q3 FY24 to Rs.4,114 crore in Q3 FY25.

Bank of India recorded a 35% YoY increase in net profit for the nine months that ended in FY25, totaling Rs.6,593 crore, as opposed to Rs.4,879 crore during the same period the previous year. While NII increased by 7% YoY to Rs.18,331 crore, operating profit for the nine-month period increased by 10% YoY to Rs.11,527 crore. Additionally, non-interest income increased by 28% year over year to Rs.5,566 crore.Operating costs for the bank over the nine months totaled Rs.12,370 crore, which was more than the Rs.10,949 crore spent during the same period last year.

BoI showed consistent improvement in key financial ratios for Q3 FY25. The bank’s Net Interest Margin (NIM) stood at 2.80%, slightly down from 2.85% in Q3 FY24 but higher than the 2.82% reported in Q2 FY25. The Return on Assets (RoA) improved by 14 basis points year-on-year to 0.96%, compared to 0.82% in Q3 FY24, with a modest sequential rise of 2 bps from 0.94% in Q2 FY25.

Return on Equity (RoE) saw a significant increase of 157 bps, reaching 16.53% in Q3 FY25, up from 14.96% in the same period last year. The Cost to Income ratio improved to 52.63% in Q3 FY25, compared to 54.87% in Q3 FY24 and 51.22% in Q2 FY25, reflecting better operational efficiency.