Bank of India (BANKINDIA) Q2 24/25 earnings summary

Executive summary

• Net profit for Q2 FY25 rose to INR 2,374 crores, up 63% year-over-year, with operating profit at INR 4,147 crores, up 10% YoY.

• Achieved strong year-over-year credit growth of 14.51% and global business up 12.05%, with significant growth in RAM (retail, agriculture, MSME) sectors at 19%.

• Asset quality improved, with gross NPA ratio at 4.41% (down 143 bps YoY) and net NPA at 0.94% (down 60 bps YoY).

• Non-interest income surged to INR 2,518 crores in Q2, driven by treasury gains and recoveries from written-off accounts.

• Digital transformation and ESG initiatives advanced, with new products, IT modernization, and awards for innovation.

Financial highlights

• Global gross advances rose to INR 6.21 lakh crores, up from INR 5.43 lakh crores YoY; domestic gross advances at INR 5.20 lakh crores.

• CASA deposits increased 7.26% YoY to INR 2.75 lakh crores, with a CASA ratio of 41.18%.

• Interest income for Q2 was INR 17,000 crores (up 16% YoY); non-interest income for H1 at INR 3,820 crores (up 21% YoY).

• Net interest income for Q2 FY25 was INR 5,986 crores, up 4% YoY; global NIM at 2.82% and domestic NIM at 3.14%.

• Cost-to-income ratio stood at 51.22% for Q2 FY25.

Outlook and guidance

• Guidance for FY25: global credit growth at 14%, domestic credit growth at 15%, and deposit growth at 12-13%.

• ROA expected to be near 1% for Q3 and Q4, with FY25 guidance at 0.94%. NIM guidance for FY25 is 2.90%.

• Credit cost guidance maintained at 0.70% for FY25; slippage ratio expected at 1.40%.

• Capital raising plans for FY25 include INR 2,500 crores each in Additional Tier I and Tier II bonds.

• Medium-term target: total business of INR 18 lakh crores by March 2027 and INR 32 lakh crores by 2031.