Public sector banking major Bank of India (BoI) has delivered a stellar financial performance for the fourth quarter and full year ended March 31, 2025, showcasing strong profitability, improved asset quality, and healthy credit growth.
BoI reported a net profit of ₹9,219 crore for FY25, marking an impressive 46% year-on-year (YoY) growth. For Q4FY25, net profit surged by 82.5% YoY to ₹2,626 crore. The bank’s Return on Assets (ROA) and Return on Equity (ROE) stood at 0.90% and 15.27% respectively for the fiscal year.
On the income front, Net Interest Income (NII) rose by 6% YoY, while the Net Interest Margin (NIM) stood at 2.82% (Global) and 3.10% (Domestic) for FY25. In Q4FY25, Global and Domestic NIMs were reported at 2.61% and 2.91%, respectively.
BoI’s Global Advances climbed 13.74% YoY, with Domestic Advances growing by 14.45% YoY. The bank recorded strong momentum in key segments:
- Retail Advances: +19.93% YoY
- MSME Advances: +18.39% YoY
- Agriculture Advances: +16.30% YoY
- Corporate Advances: +9.59% YoY
Total Deposits rose by 10.65% YoY to ₹8.16 trillion, with Domestic Deposits growing by 11.21% YoY. The CASA Deposit base expanded by 3.86% YoY, with a CASA ratio of 40.28% as of March 31, 2025.
Strong Asset Quality and Capital Position
BoI’s asset quality showed remarkable improvement:
- Gross NPA fell to 3.27% from 4.98% YoY
- Net NPA improved to 0.82%, a decline of 40 bps YoY
- Provision Coverage Ratio (PCR) rose by 180 bps YoY to 92.39%
- Slippage Ratio reduced by 22 bps to 1.36%
- Credit Cost improved by 2 bps YoY to 0.76%
The Capital Adequacy Ratio (CAR) stood at 17.77%, with Common Equity Tier-I (CET-1) at 14.84%.
Digital Growth and Strategic Outlook
With over 440 services available on its mobile banking platform “BOI Mobile Omni Neo Bank”, BoI continues to enhance its digital banking offerings to meet evolving customer needs.
During the post-results interaction, Shri Rajneesh Karnatak, MD & CEO of BoI, acknowledged margin pressures stemming from anticipated rate cuts by the Reserve Bank of India (RBI). With a 50 basis point cut already executed and another 50 bps anticipated, the bank expects an impact of around 20 basis points on margins due to deposit repricing lag.
Non-interest income nearly doubled, growing by 96% YoY to ₹3,428 crore in Q4FY25, boosted by higher fees, commissions, and treasury gains. Provisions for NPAs fell significantly to ₹1,347 crore from ₹2,043 crore in the same period last year.
Looking ahead, BoI has provided credit growth guidance of 12–13% for FY26, backed by a strong sanctioned corporate loan pipeline of ₹60,000 crore. Deposit growth is expected in the range of 11–12%.
BoI’s strong performance underscores its resilient fundamentals, strategic focus on credit growth, digital expansion, and effective risk management—solidifying its position among top-performing public sector banks in India.
