Consistent ROA, Robust Asset Quality: Bank Reports Steady Q3FY25 Performance
Key Highlights
- BOB reports a growth of 12.6% in its 9MFY25 Net Profit to INR 14,533 crore
- Net Profit for Q3FY25 stands at INR 4,837 crore, a growth of 5.6% YoY.
- Asset quality continues to be robust with Gross NPA below 2.5% at 2.43% for Q3FY25, a reduction of 65 bps YoY.
- Net NPA ratio also remains low at 0.59%, declining by 11 bps YoY.
- Slippage ratio remains contained at 0.90% for Q3FY25 and 0.81% for 9MFY25.
- Credit costs remain below 1% due to better asset quality at 0.30% for the quarter and 0.47% for 9MFY25.
- BOB’s balance sheet remains robust with a healthy Provision Coverage Ratio (PCR) of 93.51% with TWO & at 76.03% without TWO.
- Return on Assets (ROA) remains above 1% and stands at 1.15% for the quarter and 1.17% for 9MFY25.
- Return on Equity (ROE) for the quarter is 17.01% and 17.03% for 9MFY25.
- Operating profit for Q3FY25 stands at INR 7,664 crore, up by 9.3% YoY.
- Operating profit growth was supported by 34.1% YoY growth in Non-Interest Income which stands at INR 3,769 crore for Q3FY25.
- Cost The income ratio has also reduced by 4 bps YoY to 49.53% for Q3FY25.
- BOB’s Global Advances registered a growth of 11.8% YoY in Q3FY25 led by robust retail loan book growth. Bank’s organic Retail Advances grew by 19.5%, driven by growth in high-focus areas such as Auto Loans (21.1%), Home Loans (16.6%), Mortgage Loan (16.3%), and Education Loan (16.9%).
- Capital Adequacy (CRAR) remains healthy at 15.96%.
Profitability
- BOB reported a standalone Net Profit of INR 4,837 crore in Q3FY25 as against a profit of INR 4,579 crore in Q3FY24. Net Profit for 9MFY25 stands at INR 14,533 crore (+12.6% YoY) as against INR 12,902 crore in 9MFY24.
- Net Interest Income (NII) grew by 2.8% YoY to INR 11,417 crore in Q3FY25. NII for 9MFY25 registered a growth of 5.2% and stands at INR 34,639 crore.
- Non-Interest Income for Q3FY25 grew by 34.1% YoY and stands at INR 3,769 crore. Non-Interest Income for 9MFY25 stands at INR 11,438 crore up by 11% YoY
- Global NIM stands at 2.94% in Q3FY25. Global NIM for 9MFY25 stands at 3.08%.
- Yield on Advances stands at 8.35% in Q3FY25 as against 8.51% in Q3FY24.
- Cost of Deposits increased to 5.08% in Q3FY25 as against 4.96% in Q3FY24.
- Operating Income for Q3FY25 stands at INR 15,186 crore (+9.2% YoY). Operating Income for 9MFY25 stands at INR 46,076 crore registering a growth of 6.6%.
- Operating Profit for Q3FY25 stands at INR 7,664 crore (+9.3% YoY).
- Operating Profit for 9MFY25 increased by 6.3% to INR 24,303 crore.
- Cost to Income ratio improved by 4 bps YoY and stands at 49.53% for Q3FY25. Cost to Income ratio of 9MFY25 stands at 47.26%.
- Return on Assets (RoA) (annualised) stands at to 1.15% in Q3FY25. RoA for 9MFY25 stands at 1.17%
- Return on Equity (RoE) (annualised) for Q3FY25 stands at 17.01%. RoE stands at 17.03% for 9MFY25.
- For the consolidated entity, Net Profit stood at INR 5,214 crore in Q3FY25 as against INR 4,789 crore in Q3FY24.
Asset Quality
- The Gross NPA of the Bank reduced by 11.9% YoY to INR 28,471 crore in Q3FY25 and Gross NPA Ratio improved to 2.43% in Q3FY25 from 3.08% in Q3FY24.
- The Net NPA Ratio of the Bank stands at a low of 0.59% in Q3FY25 as compared with 0.70% in Q3FY24.
- The Provision Coverage Ratio of the Bank stood at 93.51% including TWO and 76.03% excluding TWO in Q3FY25.
- Slippage ratio declined to 0.81% for 9MFY25 as against 1.06% in 9MFY24. Slippage ratio for the quarter also remains contained at 0.90% for Q3FY25 as against 0.95% in Q3FY24.
- Credit cost stands at 0.30% for Q3FY25 and 0.47% for 9MFY25.
Capital Adequacy
- CRAR of the Bank stands at 15.96% in Dec’24. Tier-I stood at 13.44% (CET-1 at 12.38%, AT1 at 1.06%) and Tier-II stood at 2.52% as of Dec’24.
- The CRAR and CET-1 of consolidated entity stands at 16.36% and 12.86% respectively
- The Liquidity Coverage Ratio (LCR) consolidated stands at 130% (approx.).
Business Performance
- Global Advances of the Bank increased to INR 11,73,034 crore, +11.8% YoY.
- Domestic Advances of the Bank increased to INR 9,64,869 crore, +11.9% YoY.
- Global Deposits increased by 11.8% YoY to INR 13,92,461 crore.
- Domestic Deposits increased by 9.2% YoY to INR 11,65,874 crore in Dec’24.
- International Deposits grew by 27.3% on a YoY basis to INR 2,26,588 crore in Dec’24.
- Organic Retail Advances grew by 19.5%, led by growth in high focus areas such as Auto Loan (21.1%), Home Loan (16.6%), Mortgage Loan (16.3%), Education Loan (16.9%) on a YoY basis.
- Agriculture loan portfolio grew by 12.5% YoY to INR 1,51,050 crore.
- Total Gold loan portfolio (including retail and agri.) stands at INR 58,172 crore, registering a growth of 29.1% on a YoY basis.
- Organic MSME portfolio grew by 13.6% YoY to INR 1,31,769 crore.
- Corporate advances registered a growth of 6.8% YoY and stands at INR 3,87,405 crore.
