☎️ Con-call Highlights  - #BankofIndia 

**Bank of India - Q3 FY25 Earnings Conference Call and Presentation Key Takeaways**

**Financial Performance:**

- Operating profit for Q3 FY25 reached Rs.3,703 crore, marking a 23% year-over-year increase.
- Net profit for Q3 FY25 amounted to Rs.2,517 crore, up by 35% YoY.
- Accumulated profit for the nine months ending December 2024 stood at Rs.6,593 crore, up by 35% from last year.
- Global NIM for Q3 FY25 was 2.80%, reaching 2.90% for the nine months ending December 2024.
- Domestic NIM recorded at 2.98% for Q3 FY25 and improved to 3.19% over the nine-month period.
- Interest income for Q3 FY25 totaled Rs.18,211 crore, showing a 20% YoY increase.
- Interest income for the nine months ending December 2024 exceeded Rs.52,000 crore, rising 18% YoY.
- Non-interest income surged 46% YoY to Rs.1,746 crore in Q3 FY25, with a total of Rs.5,566 crore over nine months, an increase of 28% YoY.
- The cost-to-income ratio was 52.63% for Q3 FY25 and 51.76% over the nine months.
- Credit cost marked at 0.39% for Q3 FY25.
- CASA ratio as of December 2024 stood at 41.05%.

**Operational Performance:**

- Global business grew 13.62% YoY, reaching Rs.14.46 lakh crore.
- Global advances increased by 15.30% YoY, totaling Rs.6.51 lakh crore.
- Global total deposits rose 12.29% YoY to Rs.7.94 lakh crore.
- Domestic deposits saw a 13.26% YoY growth, reaching Rs.6.78 lakh crore.
- CASA grew 6.07% YoY to Rs.2.77 lakh crore.
- Domestic gross advances climbed 15% YoY, reaching Rs.5.46 lakh crore.
- RAM (Retail, Agriculture, MSME) advances grew 18.96% YoY to Rs.3.12 lakh crore, making up 57% of domestic advances.
- Personal loans surged by 42.49% YoY, standing at Rs.12,394 crore.
- Collection efficiency reached 97% by December 31, 2024.

**Future Outlook:**

- Guidance for domestic credit growth set at 14-15% for FY25.
- Forecast for domestic deposit growth is 13-14% for FY25.
- Credit cost is expected to be around 0.70% for FY25.
- Anticipated cost-to-income ratio is approximately 51% for FY25.
- NIM projected at around 2.90% for FY25.
- Strategic focus on advancing high-yielding segments, boosting CASA mobilization, and retail term deposits.
- Emphasis on reducing Special Mention Accounts (SMA) and curbing fresh slippages.
- Focus on enhancing efficiency, implementing recovery measures, and expanding market share to drive bottom-line growth.

**Concerns:**

- The cost-to-income ratio rose to 52.63% in Q3 FY25, with management targeting moderation to about 51% for the year.
- A slight compression in NIM during Q3 FY25, potentially attributed to penal charges and lower-margin international business.
- Recovery from written-off accounts was lower compared to the previous quarter due to extensive recovery in Q2 FY25.
- Yield on funds declined, and further drops in yields are expected in Q4.

**Other Important Points:**

- Introduction of a new home loan product, "Star Samriddhi."
- A strategic two-year roadmap for MSME growth, focusing on tourism, hospitality, and logistics sectors.
- Implementation of a market intelligence and analytics-driven strategy for MSME cluster-based finance.
- "Kisan Drone Scheme - Akash Doot" announced, providing loans up to Rs.25 lakhs for agricultural drones.
- Initiatives for re-KYC simplification and automation via Business Correspondent (BC) channels for low-risk customers.
- Launch of Project Next Tech with a 24/7 resiliency operational center for rapid response and recovery.
- Procurement of advanced cyber solutions for enhanced cyber risk management.
- Announcement of a Universal API gateway to facilitate open banking.
- Implementation of customer feedback through QR codes in branches.
- A credit pipeline of Rs.70,000 crore, comprising Rs.60,000 crore in corporate and Rs.10,000 crore in RAM.
- Sustained double-digit growth in global business, credit, and deposit figures.
- Projected credit and deposit growth of 14-15% and 13-14% respectively for FY25.

* Machine generated highlights, exercise diligence

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