Bank of India (BANKINDIA) Q2 24/25 earnings summary

Executive summary

• Global business grew 12.05% year-over-year to ₹13.97 lakh crore as of September 2024, with credit growth at 14.51% and domestic advances up 15.03% year-over-year.

• Net profit for Q2 FY25 surged 63% year-over-year to ₹2,374 crore, with operating profit at ₹4,147 crore (up 10% YoY).

• Asset quality improved: gross NPA ratio at 4.41% (down 143 bps YoY), net NPA at 0.94% (down 60 bps YoY).

• Digital transformation and ESG initiatives advanced, with new products, awards for innovation, and 17 products digitized.

• Non-interest income surged, driven by treasury gains, investment profits, and recoveries from written-off accounts.

Financial highlights

• Interest income for Q2 was ₹17,35,455 lakh (up 15.9% YoY); H1 interest income was ₹34,000 crore (up 17% YoY).

• Non-interest income for Q2 was ₹2,518 crore (up 49% YoY); H1 non-interest income was ₹3,820 crore (up 21% YoY).

• Operating profit for Q2 FY25 was ₹4,147 crore (up 10% YoY); return on assets improved to 0.94% and return on equity to 16.33%.

• Cost-to-income ratio stood at 51.22% for Q2 FY25.

• Capital adequacy ratio (Basel III) increased to 16.63%.

Outlook and guidance

• FY25 guidance: domestic credit growth ~14%, deposit growth ~13%.

• ROA expected near 1% for Q3 and Q4; NIM guidance for FY25 at ~2.90%.

• Credit cost guidance at 0.70% for FY25; slippage ratio at 1.40%.

• Focus on digital adoption, IT modernization, and ESG integration to drive future growth.

• Medium-term: target total business of ₹18 lakh crore by March 2027 and ₹32 lakh crore by 2031.