The shares of a prominent PSU bank experienced a notable decline of 12.3% to ₹121.70 per share following the decline in margins in Q4.
At 11:50 a.m., Bank of India shares were trading at ₹123.90 per share, down 10.77 % on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹56,271 crore.
In the quarter ending March 2024 (Q4FY24), Bank of India reported a consolidated net profit of ₹1,574 crores, reflecting an 11% increase from the ₹1,413 crores recorded in Q4FY23. Furthermore, the company witnessed a notable surge in total income from operations for the same quarter, reaching ₹16,250 crores, marking a 20% rise compared to the previous year’s corresponding quarter’s revenue of ₹13,548 crores.
The bank’s board has approved a capital raising of funds up to ₹ 5,000 crore by issuing Basel III compliant Additional Tier 1 and Tier 2 bonds, each amounting to ₹2,500 crore.
In the fourth quarter of FY24, the gross non-performing asset (NPA) ratio decreased to 4.98 percent from 5.35 percent in the previous quarter and 7.31 percent a year ago. Similarly, the net NPA ratio dropped to 1.22 percent as of March 31, compared to 1.41 percent at the end of December 31, 2023, and 1.66 percent on March 31, 2023.
NIM (Global) was at 2.92 percent in Q4FY24, down from 3.15 percent in Q4FY23 and up from 2.85 percent in Q3FY24. NIM (Domestic) stood at 3.30 percent in Q4FY24, a decrease from 3.59 percent in Q4FY23 and an increase from 3.21 percent in Q3FY24.
The bank’s net interest income (NII) rose by 7 percent year-on-year to ₹ 5,937 crore. Its global business increased by 11.6 percent year-on-year to ₹ 11.8 lakh crore, with a flat global return on assets at 0.6 percent.
Global Deposits increased by 10.21 percent year-on-year from ₹ 6,69,586 crore in March 2023 to ₹ 7,37,920 crore in March 2024, while Global Advances increased by 13.52 percent year-on-year from ₹ 5,15,852 crore in March 2023 to ₹ 5,85,595 crore in March 2024.
In FY23-24, the company’s consolidated income surged by 27% to ₹47,932 crores from ₹61,073 crores in FY22-23. Correspondingly, the net profit for the fiscal year increased by 71% to ₹6,567 crores compared to ₹3,839 crores in the preceding fiscal year.
Bank of India (BOI) is an Indian public sector bank offering a broad spectrum of retail and corporate banking products and services including Retail banking, Corporate banking, Rural banking, and other services.
Bank of India shares have witnessed a 15% gain in the last six months and a 57% gain in the last 12 months.
Written by Omkar Chitnis
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