BoM Q1 results: Net up 46.64% at Rs 1,293 crore on healthy NII growth | Company Results

Nidhu Saxena, managing director and chief executive of BoM, said the bank expects NIMs to be around 3.75 per cent in FY25.

Its non-interest income rose 42.16 per cent YoY to Rs 894 crore.

The lender’s provisions for non-performing assets (NPAs) rose marginally from Rs 539.07 crore in Q1 of FY24 to Rs 586.39 crore in Q1 of FY25. There was an increase in slippages from the agriculture loan portfolio in the June quarter, Saxena said in a post-results virtual press meet. This pushed up the credit cost to 1.2 per cent in Q1 FY25 from 0.9 per cent in March 2024. It has made additional provision for the stressed agriculture credit in Q1.

Advances grew 18.99 per cent YoY to Rs 2.09 trillion in Q1 of FY25. The retail advances grew by 18.26 per cent YoY to Rs 53,161 crore in June 2024.

Total deposits increased 9.43 per cent YoY to Rs 2.67 trillion. The share of low-cost deposits—current account and saving account (CASA)—declined to 49.86 per cent at the end of June 2024 from 50.97 per cent a year ago. The credit deposit ratio (C/D ratio) of the bank stood at 78.17 per cent in June 2024, up from 71.89 per cent a year ago.

Saxena said the C/D ratio at 78.17 per cent was a healthy level and not a cause of concern. The bank was mindful of the gap between credit and deposit growth rates. It is stepping up efforts to mobilise deposits. It would raise up to Rs 10,000 crore through infrastructure bonds in more than one tranche.

The asset quality profile improved with gross NPAs declining to 1.85 per cent in June 2024 from 2.28 per cent in June 2023. Net NPAs also declined from 0.20 per cent in June 2023 to 0.24 per cent in June 2024. The provision coverage ratio (PCR), including written-off accounts, stood at 98.36 per cent in June 2024 from 98.37 per cent in June 2023.

Its capital adequacy stood at 17.04 per cent with tier 1 at 13.4 per cent at the end of June 2024.

The Pune-based lender has indicated an equity offering in August/September 2024 as part of efforts to bring down the government of India’s stake from around 86.46 per cent now to 75 per cent.

Saxena said the size of the equity offering will depend on market appetite and capital requirements. At the current market price, the bank would need to raise Rs 6,700 crore through the equity offering to reduce the government’s holding to 75 per cent. Of this, the public sector lender plans to raise about Rs 5,000 crore in the current financial year.

First Published: Jul 15 2024 | 6:39 PM IST