Mumbai: Bank of India reported a 34.6% jump in net profit for Q3FY25, reaching Rs. 2,517 crore compared to Rs. 1,870 crore in the same quarter last year. The increase in net profit followed a surge in retail loans coupled with an improvement in asset quality.
Sequentially, net profit rose 6% from Rs. 2,374 crore in Q2FY25. Net interest income grew 11% year-on-year to Rs. 6,070 crore from Rs. 5,463 crore, while non-interest income increased 46% to Rs. 1,746 crore from Rs. 1,193 crore. Operating profit rose 23.3% to Rs. 3,703 crore, up from Rs. 3,004 crore in Q3FY24, though operating expenses increased to Rs. 4,114 crore from Rs. 3,653 crore.
Deposits stood at Rs. 7.9 lakh crore, up 12.3% year-on-year from Rs. 7.1 lakh crore. Advances rose 15.3% to Rs. 6.5 lakh crore from Rs. 5.7 lakh crore. The retail, agriculture, and MSME segments grew 19%, comprising 57.1% of total advances, with retail credit alone rising 21.2%.
Asset quality improved as gross NPAs declined 20.5% to Rs. 24,048 crore, and the gross NPA ratio fell 166 basis points to 3.7% from 5.4% a year ago. Net NPAs dropped 29.1% to Rs. 5,410 crore, with the net NPA ratio down 56 basis points to 0.9% from 1.4%. The provision coverage ratio rose to 92.5% from 90%.
The capital adequacy ratio stood at 16%, and the CET-1 (common equity tier 1) ratio was 13%, reflecting a strong capital buffer. Return on equity improved to 16.5% from 15% in Q3FY24. Yield on advances increased to 8.6%, up from 8.4% last year, while the cost of deposits rose to 5% from 4.6%.
