Bank of India Posts Strong Profit Growth Amid Challenges
Bank of India reported a 7% rise in net profit for the December quarter, bolstered by a notable increase in non-core income. Despite facing challenges in net interest margins, the bank remains optimistic about loan growth and capital adequacy, while addressing the impact of recent financial developments.
- Country:
- India
State-owned Bank of India reported its financial results for the December quarter, posting a 7% rise in net profit reaching Rs 2,705 crore. This increase was largely driven by a rise in non-core income, despite some pressure on net interest margins.
The bank's net interest income rose 6% year-on-year to Rs 6,461 crore, supported by a 14% growth in advances. However, the net interest margin compressed to 2.57% from 2.80%. Managing Director and CEO Rajneesh Karnatak mentioned plans to maintain a steady loan growth and tackle the challenges posed by the RBI's rate cuts.
Other highlights included a 30% increase in non-interest income and a stable outlook on fresh slippages and NPA ratios. The bank is adapting to a changing savings landscape, focusing on domestic advances, and is preparing for the implementation of a credit loss provisioning system.
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