Bank of India Net Profit Up 10% in Q1 FY24

Mumbai, Aug 3 (PTI) State-owned Bank of India on Saturday reported a 10 per cent growth in its June quarter net profit at Rs 1,703 crore, limited by a rise in money set aside for tackling bad loans.

The bank had reported a net profit of Rs 1,551 crore in the year-ago period.

Its core net interest income grew 6 per cent to Rs 6,275 crore in the reporting quarter on the back of a nearly 16 per cent jump in advances and the net interest margin widening by 0.04 per cent to 3.07 per cent.

The non interest income declined to Rs 1,302 crore from Rs 1,462 crore during the quarter.

Deposit growth came at 9.74 per cent during the reporting quarter.

On the credit expansion front, both retail and agriculture showed healthy growth of over 20 per cent during the quarter while MSME book expanded by 13 per cent.

The gross non performing assets ratio improved to 4.62 per cent at the end of the quarter.

The provisions for bad assets increased to Rs 1,215 crore, up from the Rs 776 crore in the year-ago period, and seemed to be one of the major factors limiting the earnings growth.

The overall capital adequacy for the lender stood at 16.18 per cent, with the core buffer level at 13.62 per cent.