MUMBAI: Public sector lender Bank of India has reported a 32% jump in net income at Rs 2,252 crore in the June quarter driven by other income and better asset quality, which cushioned a fall in net interest income, compared to Rs 1,702.7 crore in the same period last fiscal.
The other income or non-interest income of the city-based lender rose 66.4% to Rs 2,166 crore, while the core net interest income fell 3% to Rs 6,068 crore, in spite of the 11.24% jump in domestic advances to Rs 5,65,297 crore during the reporting quarter.
Another boost for the bottomline was the improving asset quality, with the gross non-performing assets ratio declining to 2.92 from 4.26 in the reporting period, while the net NPA ratio also fell to 0.75 from 0.99.
Provision coverage strengthened to 92.94%, higher than 92.11% a year ago. The slippage ratio remained stable at 0.33, compared to 0.35 in June 2024. Additionally, credit cost eased to 0.68% from 0.85% a year earlier and 0.84% in the previous quarter.
In absolute terms, GNPA declined by 29.14% from Rs 27,716 crore to Rs 19,640 crore and NNPA too fell by 13.19% from Rs 5,702 crore in June 2024 to Rs 4,950 crore in June 2025, the bank said in a statement.
Lower net interest income meant the bank losing its margins as well, with net interest margin declining to 2.55% from 3.07% a year ago, reflecting margin pressure due to lower yields on advances and funds.
On the advances front, the bank disbursed home loans worth Rs 69,197 crore, a 14% increase, while personal loans and vehicle loans grew 21.73% and 21.64%, respectively.
Total deposits rose 9.07%, with domestic deposits increasing by 9.62%. The low-cost Casa deposits grew 2.50% and the Casa ratio stood at 39.88.