Bank of India records 7% increase in Q4 net profit

State-owned Bank of India (BoI) reported a 7 per cent rise in net profit, reaching Rs 1,439 crore for the March quarter. This marks an improvement from the net profit of Rs 1,350 crore recorded in the same quarter a year ago.

Bank of India disclosed in a regulatory filing that its total income surged to Rs 17,913 crore during the reviewed quarter, up from Rs 16,549 crore in the corresponding period last year.

The bank's net interest income (NII) also witnessed growth, hitting Rs 5,937 crore in the period under review, compared to Rs 5,523 crore in the corresponding quarter a year ago.

In terms of asset quality, Bank of India reported a moderation in gross Non-Performing Assets (NPAs) to 4.98 per cent of gross advances as of March 31, 2024, down from 7.31 per cent at the end of March 2023. Similarly, net NPAs declined to 1.22 per cent of advances from 1.66 per cent at the end of 2023.

However, the provision for bad loans increased to Rs 2,043 crore, compared to Rs 546 crore earmarked during the same quarter a year ago. The provision coverage ratio of the bank stood at 90.59 per cent at the end of March.

For the financial year ended March 2024, the bank's net profit surged by 57 per cent to Rs 6,318 crore, compared to Rs 4,023 crore in the previous year. Total income of the bank increased to Rs 66,804 crore in FY24 from Rs 54,748 crore in FY23.

The board has recommended a dividend of Rs 2.80, or 28 per cent, per equity share of face value Rs 10 each fully paid up for the 2023-24 subject to approval at the ensuing Annual General Meeting.

The capital adequacy ratio (CRAR) of the bank improved to 16.96 per cent, up from 16.28 per cent on March 31, 2023. Additionally, the net interest margin (NIM) of the bank stood at 3.30 per cent at the end of March 2024.

(With PTI inputs)