Bank of India (BANKINDIA) Q1 24/25 earnings summary

Executive summary

• Global business grew over 12% year-over-year to ₹13.64 lakh crore in June 2024, with advances up 15.82% and deposits up 9.74%.

• Net profit for Q1 FY25 reached ₹1,703 crore, a 19.8% increase year-over-year.

• Asset quality improved, with gross NPA at 4.62% (down 205 bps YOY) and net NPA at 0.99% (down 66 bps YOY).

• Retail, agriculture, and MSME advances saw strong double-digit growth, with retail up 20.46% and agriculture up 22.18%.

• Total income for the quarter ended June 30, 2024, rose to ₹18,24,002 lakh (standalone), up from ₹15,82,108 lakh year-over-year.

Financial highlights

• Net interest income rose 6% YOY to ₹6,275 crore; net interest margin improved to 3.07%.

• Operating profit for Q1 FY25 was ₹3,677 crore; adjusted YOY growth is ~10% excluding last year's tax refund.

• Return on assets at 0.70% and return on equity at 13.48% for Q1 FY25.

• Total non-interest income was ₹1,302 crore, down from ₹1,462 crore a year ago.

• Provisions (other than tax) and contingencies rose to ₹1,29,326 lakh from ₹82,416 lakh year-over-year.

Outlook and guidance

• Domestic credit growth projected at 13-14% and deposit growth at 11-12% for FY25.

• Net interest margin guidance for FY25 is 2.90%, considering rising deposit costs.

• Credit cost guidance at 0.70% for FY25; slippage ratio expected at 1.20%.

• Gross NPA targeted at ~4% and net NPA at ~0.90% by March 2025.

• Capital raising plan for FY25 includes ₹2,500 crore each in Additional Tier I and Tier II bonds.