The government-owned Bank of India announced on Saturday that its net profit for the April–June quarter of the current financial year increased by 10% to Rs 1,703 crore from Rs 1,551 crore in the same quarter the previous year.
An important measure of core income, net interest income (NII), increased 6.1% to Rs 6,275.8 crore from Rs 5,914 crore in the same period previous year.
In the first quarter, Bank of India also claimed an improvement in the quality of its assets; gross non-performing assets (NPA) decreased from 4.98 percent of total advances to 4.62 percent.
Additionally, the Net NPA ratio improved, falling from 1.22 percent to 0.99 percent on a quarter-over-quarter basis.
As of June 30, 2024, the bank’s total deposits stood at Rs 7.38 lakh crore, up 9.74 percent from Rs 6.97 lakh crore the previous quarter.
Nonetheless, at the conclusion of the quarter, the public sector bank’s CASA deposits decreased from 44.52 percent of total deposits in the same quarter of the prior year to 42.68 percent.
The amount of money deposited into bank customers’ current and savings accounts is known as the CASA deposit. For banks, it is the most affordable and significant source of funding, which raises interest margins and profits.
The Bank of India’s gross advances increased from Rs 5.18 lakh crore in the same quarter last year to Rs 5.86 lakh crore in the first quarter, a 15.82% increase.
During the quarter, the bank raised its lending to MSMEs by a double-digit 13.1%, while its credit to the agriculture sector climbed by a solid 22.2% to Rs 88,977 crore.
During the quarter, retail loans—which yield greater returns for banks—saw a 24.5% increase to Rs 1.15 lakh crore.
