- 05 Aug 2024
- ICICI Securities
BANK OF INDIA REPORTED STEADY PERFORMANCE IN Q1FY25
BANKINDIA - 122 Change: 0.36 (0.30 %)News: Bank of India reported steady performance in Q1FY25. Advances growth remained healthy at 15.8% YoY to ~₹ 6 lakh crore, backed by growth across segment. Within segments, retail growth continued to remain robust at 20.5% YoY, backed by home and auto loans while personal loan growth came strong at 47% YoY. Deposit accretion remained in-line with peers at 9.74% YoY with CASA ratio at 42.68%. Increase in CD ratio led to 15 bps YoY and 4 bps QoQ improvement in margins at 3.03%. However, NII growth looks optically lower at 6% YoY due to income tax refund of ₹450 crore in Q1FY24. Lower other non-interest income kept operating profit flat, while lower tax led to 10% YoY growth in earnings at ₹ 1703 crore. Asset quality continued to remain prudent with 18 bps YoY decline in slippages (non-annualised) and 35 bps QoQ improvement in GNPA at 4.63%.
Views: Guidance maintained at 13-24% growth in advance and 11-12% growth in deposits for FY25E. Operational performance remained optically muted. Relatively better business growth coupled with improvement in asset quality is seen to aid valuation. Better recovery through continued focus could act as catalyst.
Impact: Neutral