This was the bank’s highest ever quarterly net profit despite doubling of provisions at Rs 3150 crore against Rs 1555 crore a year earlier. Its operating profit stood 11.5% higher at Rs 9069 crore against Rs 8132 crore.
On a full year basis, BoB’s net profit was at Rs 20021 crore, reflecting a 2.2% year-on-year rise over Rs 19581 crore in the preceding fiscal.
The net interest margin, a key gauge of profitability, however stood lower at 2.89% for the quarter as compared with 2.98% a year back.
Managing director Debdutta Chand attributed the rise in profitability to the ability to contain interest expenses which helped the fourth quarter net interest income rise 8.7% year-on-year at Rs 12494 crore.
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The rise in provision includes a floating provision of Rs 1500 crore made during the quarter.
“We are mindful of strengthening the balance sheet while the floating provision also helped boost the provision coverage ratio to 94%,” Chand said.He gave a guidance of 12-14% advance growth and 10-12% deposit growth for FY27. “Deposit growth has come back to the system which gives us the comfort of upsizing the advance guidance,” he said.
Last year, the bank had given a 11-13% guidance for advance growth while it actually grew 16.2% to Rs 14.3 lakh crore. Deposits grew 12% to Rs 16.5 lakh crore. The MD said the advance and deposit growth has been the strongest in the last 10 quarters.
Its gross non-performing assets ratio improved to 1.89% at the end of March from 2.26% a year prior. Net NPA was at 0.45% against 0.58%.
The bank board approved a Rs 6,000 crore capital raising plan in FY27 through the issuance of additional tier 1 and/or tier II bonds. The MD said that there is no definite timeline for capital raising while the exercise will be carried out depending upon the market conditions.
The board recommended a dividend of Rs 8.5 per equity share of Rs 2 face value for FY26, translating a 425% dividend.