Key Highlights
• Bank’s Net Profit registers a YoY growth of 9.5% reaching a level of INR 4,458 crore, driven by lower credit cost.
• Return on Assets (ROA) remains consistently above 1% for 8 quarters and stands at 1.13% for Q1FY25.
• BOB has witnessed an improvement in its Asset quality with reduction in GNPA by 63 bps YoY to 2.88% from 3.51% in Q1FY24.
• Bank’s NNPA reduced by 9 bps YoY to 0.69% in Q1FY25 as against 0.78% in Q1FY24.
• Strong capital position with CRAR at 16.82% for Q1FY25
• Global Net Interest Margin (NIM) stands at 3.18% in Q1FY25.
• Operating Profit stands at INR 7,161 crore in Q1FY25.
• Credit cost remains below 1% at 0.47% for the quarter.
• BOB’s balance sheet remains robust with healthy Provision Coverage Ratio (PCR) of 93.32% with TWO & at 76.58% without TWO.
• Healthy Liquidity Coverage Ratio (LCR) of approx. 138% as on 30th June 2024.
• BOB’s Global Advances registered a growth of 8.1% YoY in Q1FY25 led by robust retail loan book growth. Bank’s organic Retail Advances grew by 20.9%, driven by strong growth across segments such as Auto Loan (25.1%), Home Loan (14.7%), Personal Loan (39.2%), Mortgage Loan (11%), Education Loan (18.8%).
• Global Deposits grew by 8.9% YoY to INR 13,06,994 crore in Q1FY25.
Global Business grew by 8.6% YoY and stands at INR 23,78,675 crore as of 30th June 2024.
Profitability
- BOB reported a standalone Net Profit of INR 4,458 crore in Q1FY25 as against a profit of INR 4,070 crore in Q1FY24.
- Net Interest Income (NII) grew by 5.5% YoY to INR 11,600 crore in Q1FY25.
- Non-Interest Income for the quarter stands at INR 2,487 crore for Q1FY25.
- Global NIM stands at 3.18% in Q1FY25.
- Yield on Advances increased to 8.55% in Q1FY25 as against 8.40% in Q1FY24.
- Cost of Deposits remained stable sequentially at 5.06% and increased by 38 bps YoY as against 4.68% in Q1FY24.
- Operating Income for Q1FY25 stands at INR 14,087 crore.
- Operating Profit for Q1FY25 stands at INR 7,161 crore.
- Cost to Income ratio stands at 49.17% for Q1FY25.
- Return on Assets (annualised) improved by 2 bps YoY and stands at 1.13% for Q1FY25.
- Return on Equity (annualised) for Q1FY25 stands at 17.45%.
- For the consolidated entity, Net Profit stood at INR 4,728 crore in Q1FY25 as against INR 4,452 crore in Q1FY24.
Asset Quality
- The Gross NPA of the Bank reduced by 11.4% YoY to INR 30,873 crore in Q1FY25 and Gross NPA Ratio improved to 2.88% in Q1FY25 from 3.51% in Q1FY24.
- The Net NPA Ratio of the Bank stands at 0.69% in Q1FY25 as compared with 0.78% in Q1FY24.
- The Provision Coverage Ratio of the Bank stood at 93.32% including TWO and 76.58% excluding TWO in Q1FY25.
- Slippage ratio sequentially declined by 7 bps to 1.05% for Q1FY25 as against 1.12% in Q4FY24.
- Credit cost stands at 0.47% for Q1FY25.
Capital Adequacy
- CRAR of the Bank stands at 16.82% in Jun’24. Tier-I stood at 14.65% (CET-1 at 13.08%, AT1 at 1.57%) and Tier-II stood at 2.17% as of Jun’24.
- The CRAR and CET-1 of consolidated entity stands at 17.20% and 13.57% respectively
- Liquidity Coverage Ratio (LCR) of approx. 138% as on 30th June 2024
Business Performance
- Global Advances of the Bank increased to INR 10,71,681 crore, +8.1% YoY.
- Domestic Advances of the Bank increased to INR 8,81,785 crore, +8.5% YoY.
- Global Deposits increased by 8.9% YoY to INR 13,06,994 crore.
- Domestic Deposits increased by 5.3% YoY to INR 11,05,460 crore in Jun’24.
- Domestic CASA deposits registered a growth of 6% YoY and stands at INR 4,49,019 crore as of 30th June 2024.
- International Deposits grew by 34.7% on a YoY basis to INR 2,01,534 crore in Jun’24.
- Organic Retail Advances grew by 20.9%, led by strong growth across segments such as Auto Loan (25.1%), Home Loan (14.7%), Personal Loan (39.2%), Mortgage Loan (11%), Education Loan (18.8%) on a YoY basis.
- Agriculture loan portfolio grew by 9.1% YoY to INR 1,39,160 crore.
- Total Gold loan portfolio (including retail and agri.) stands at INR 48,909 crore, registering a growth of 20.3% on a YoY basis.
- Organic MSME portfolio grew by 9.8% YoY to INR 1,19,940 crore.
- Corporate advances registered a growth of 2.5% YoY and stands at INR 3,55,375 crore.
Financial result for Quarter & Financial Year ended 30th June 2024
| Particulars (INR crore) | Q1FY24 | Q4FY24 | Q1FY25 | YoY(%) |
| Interest Income | 26,556 | 29,583 | 29,628 | 11.6 |
| Interest Expenses | 15,559 | 17,791 | 18,029 | 15.9 |
| Fee Income | 1,507 | 1,915 | 1,479 | -1.9 |
| Net Interest Income (NII) | 10,997 | 11,793 | 11,600 | 5.5 |
| Operating Income | 14,319 | 15,984 | 14,087 | -1.6 |
| Operating Expenses | 6,495 | 7,878 | 6,926 | 6.6 |
| Operating Profit | 7,824 | 8,106 | 7,161 | -8.5 |
| Total Provisions (other than tax) and contingencies | 1,946 | 1,302 | 1,011 | -48.1 |
| of which, Provision for NPA Bad Debts Written-off | 1,693 | 1,485 | 1,269 | -25.0 |
| Profit before Tax | 5,878 | 6,804 | 6,151 | 4.6 |
| Provision for Tax | 1,807 | 1,918 | 1,692 | -6.4 |
| Net Profit | 4,070 | 4,886 | 4,458 | 9.5 |
Business position
| Particulars (INR crore) | Jun 30 2023 | Mar 31 2024 | Jun 30 2024 | YoY (%) |
| Domestic deposits | 10,50,306 | 11,28,514 | 11,05,460 | 5.3 |
| Domestic CASA | 4,23,600 | 4,66,401 | 4,49,019 | 6.0 |
| Global deposits | 11,99,908 | 13,26,958 | 13,06,994 | 8.9 |
| Domestic advances | 8,12,626 | 8,98,116 | 8,81,785 | 8.5 |
| Of which, retail loan portfolio (Organic) | 1,84,091 | 2,14,942 | 2,22,494 | 20.9 |
| Global advances | 9,90,988 | 10,90,506 | 10,71,681 | 8.1 |
Key Ratios
| Particulars | Q1FY24 | Q4FY24 | Q1FY25 |
| NIM Global % | 3.27 | 3.27 | 3.18 |
| Return on Assets (%) | 1.11 | 1.25 | 1.13 |
| CRAR (%) | 15.84 | 16.31 | 16.82 |
| CET-1 (%) | 11.94 | 12.54 | 13.08 |
| Gross NPA (%) | 3.51 | 2.92 | 2.88 |
| Net NPA (%) | 0.78 | 0.68 | 0.69 |
| PCR (with TWO) (%) | 93.23 | 93.3 | 93.32 |