The state-owned bank has shown healthy growth in Q4FY23 as compared to FY22. The standalone profit grew almost 123%, and the bank has estimated 11%-12% growth in FY24. The Bank of India will also raise Rs4,500 crore in the second quarter by issuing equity and reducing the government share to 75%. Bank of India has seen a decline in mis-repayment of loans of 90 days duration. Further, reduction in GNPA and NNPA of the bank, therefore, increasing its margin.
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About Bank of India
Bank of India (BOI) is an Indian public sector bank headquartered in Bandra Kurla Complex, Mumbai. Founded in 1906, it has been government-owned since nationalisation in 1969. BOI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications), which facilitates provision of cost-effective financial processing and communication services. As on 31st March 2021, Bank of India’s total business stands at ₹1,037,549 crore (US$130 billion), has 5,108 branches and 5,551 ATMs around the world (including 24 overseas branches).
The product and Services provided by the bank are Consumer  banking, Corporate banking, Finance and insurance, Investment  banking, Mortgage loans, private banking, Private equity, Savings,  Securities, Asset management and Wealth management.
Results of Q4 FY23
Public sector lender Bank of India (BOI) has declared impressive Q4  results along with a dividend of 20%. The bank’s net profit grew by  123% YoY, from Rs 606 Cr in Q4FY22 to Rs 1,350 Cr for Q4FY23,  while its operating profit climbed by 69.67% YoY, from Rs 2,466 Cr in  Q4FY22 to Rs 4,184 cr in Q4FY23.
The bank reported that its Net  Interest Income (NII) rose from Rs. 3,987 Cr. in Q4FY22 to Rs 5,493  Cr. in Q4FY23, representing a growth of 37.77%. Bank of India  reported that its non-interest income climbed from Rs 1,587 Cr in  Q4FY22 to Rs 3,099 Cr for Q4FY23, a 95.27% rise. This was a  sequential improvement of 116% from Rs 1,432 Cr in Q3FY22.Â
BOI reported that its operating profit climbed by 34.09% from  Rs.9,988 Cr for FY22 to Rs.13,393 Cr in FY23, while its net profit  increased by 18.15% YOY, from Rs.3,405 Cr in FY22 to Rs.4,023 Cr. The  bank’s Net Interest Income (NII) rose from Rs. 14,063 Cr in FY22 to Rs 20,275 Cr in FY23, a 44.17% rise. Non-Interest Income was Rs 7,100 Cr in FY23 compared to Rs 7,879 Cr in FY22.Â
The bank reported that its Net NPA dropped by 18.25% YOY from Rs.  9,852 Cr in March 2022 to Rs. 8,054 Cr in March 2024, while its Gross  NPA decreased by 17.36% YOY from Rs. 45,605 Cr. The bank said that its GNPA ratio and Net NPA ratio both decreased from 9.98% to  7.31% and 2.34% to 1.66%, respectively. BOI said its Provision  Coverage Ratio (PCR) stood at 89.68% in March 2024 against 87.76%  in March 2022.Â
According to the bank, NIM (Global) increased from 2.56% in Q4FY22  to 3.15% in Q4FY23 while NIM (Domestic) increased from 2.90% to  3.59%. Return on Equity (RoE) increased from 6.64% to 13.52%, and  Return on Assets (RoA) increased from 0.30% to 0.63% in Q4FY22  and Q4FY23, respectively. From 1.10% in Q4FY22 to 0.45% in Q4FY23,  the Credit Cost plummeted.Â
According to the bank, domestic deposits rose by 2.95% YoY from Rs 5,50,833 Cr in March 2022 to Rs 5,67,063 Cr in March 2024, while  domestic CASA climbed by 2.72% YoY from Rs 2,45,464 Cr to Rs 2,52,149 Cr, and the CASA percentage was 44.73%. According to BOI,  domestic advances grew from Rs 3,93,331 Cr to Rs 4,31,637 Cr by  9.56% YOY.
In March 2024, RAM advances accounted for 55.11% of  all advances with an increase of 12.29% YOY to Rs 2,37,884 Cr. The bank said that in March 2024, retail credit expanded by 17.40%  year on year to Rs 94,716 Cr and farm credit grew by 8.99% year on  year to Rs 72,391 Cr. According to the bank, MSME Credit increased  by 9.31% YoY to Rs 70,777 Cr.Â
The Board of Directors have “recommended a dividend of Rs 2.00  (i.e. 20%) per equity share (Face Value Rs10/- each fully paid up) for  the FY2022-23 subject to approval of shareholders at the ensuing  27th Annual General Meeting of the Bank,” said Bank of India in a  statement.Â
Funds Raising Plans
Bank of India is likely to raise funds from the market in the second  quarter of the current financial year, says DasGupta. “We are not  planning any issues in the current quarter, but probably in next  quarter we may expect because market is volatile currently,”  DasGupta told Money Control. On April 18, the bank’s board  approved raising of capital for the FY 2024-24 aggregating up to Rs 6,500 crore.Â
The fund raising can be expected through issue of fresh Equity  Capital in the form of FPO / QIP / Rights Issue / Preferential Issue and  / or Basel III compliant Additional Tier-1 (AT-1) bonds (domestic and  foreign currency) up to an amount of Rs 4,500 crore and issue of  Basel III compliant Tier-2 bonds up to Rs 2,000 crore, it had said.
