Bank of India (BANKINDIA) Q4 22/23 earnings summary

Executive summary

• FY23 net profit rose 18.16% YoY to ₹4,023 crore, supported by 44.18% growth in net interest income and a 34.09% increase in operating profit.

• Global business grew 9.27% to ₹11,85,438 crore; gross advances increased 12.87% to ₹5,15,852 crore, while deposits rose 6.64% to ₹6,69,586 crore.

• Asset quality improved, with GNPA at 7.31% and NNPA at 1.66% at March 2023; FY23 credit cost nevertheless edged up to 0.79%.

Financial highlights

• Net interest income reached ₹20,275 crore, up 44.18% YoY; operating profit rose 34.09% to ₹13,393 crore.

• Net profit was ₹4,023 crore versus ₹3,405 crore in FY22; provisions and contingencies increased 42.32% to ₹9,370 crore.

• Non-interest income fell 9.89% to ₹7,100 crore; operating expenses rose 16.98% to ₹13,982 crore.

• Domestic deposits increased 2.95% to ₹5,67,063 crore; global deposits rose 6.64% to ₹6,69,586 crore.

Outlook and guidance

• FY24 priorities: expand Retail, Agriculture and MSME lending, mobilize low-cost CASA deposits, improve asset quality, use technology to cross-sell and lower costs, and strengthen risk management.

• Target for March 2024: gross NPA below 5% and net NPA ratio below 1.30%.

• FY23-24 plans include continued technology and operational initiatives for sustainable business growth and value creation.