Bank of India Q1 results: Net profit jumps 32% YoY, asset quality softens sequentially

Bank of India on Monday reported a 32.2% year-on-year (YoY) rise in consolidated net profit for the quarter ended June 2025 at ₹2,252 crore, up from ₹1,703 crore in the same quarter last year. The growth was led by an expansion in advances across retail, MSME and overseas segments.

Global advances grew 12.02% YoY, with domestic loans up 11.24%. Overseas advances rose 16.34%, while retail and MSME loans expanded by 20% and 17%, respectively. Agriculture credit also showed healthy growth of 12%.

Deposits rose 9.07% YoY, with domestic deposits up 9.62%. CASA deposits increased 2.5%, with the CASA ratio at 39.88%.

However, net interest income (NII) contracted by 3.3% YoY to ₹6,068 crore, compared with ₹6,276 crore a year ago, raising concerns over margin pressure. Operating profit for the quarter stood at ₹4,009 crore, up 9% YoY.

The bank’s asset quality showed sequential moderation. Gross non-performing assets (GNPA) stood at 2.92%, improving 170 basis points YoY but up from 2.89% in the March quarter. Net NPA declined to 0.75% from 0.82% sequentially.

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Return ratios were healthy, with ROA at 0.82% and ROE at 13.55% for the quarter. Credit cost improved by 17 bps YoY to 0.68%, while provision coverage ratio rose to 92.94%.

Capital adequacy for the quarter stood at 17.39%. The bank also highlighted digital traction, with over one crore customers onboarded via its mobile app, and digital transactions making up 95.4% of total transactions.

Shares of Bank of India closed 0.7% higher at ₹112.30 on the NSE ahead of the results announcement.