Bank of India expects advances to grow 11-12% in FY24

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26 Aug, 2025 12:21

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State-run Bank of India on May 6 said it expects advances to grow by 11-12 percent in the current financial year.

"We expect advances to grow by 11-12 percent in FY24," said Rajneesh Karnatak, MD, Bank of India at the Q4FY23 results press conference.

In the reporting quarter, gross domestic advances of the bank grew 1.18 percent on-quarter, and 9.56 percent on year.

ALSO READ: Bank of India Q4 net profit more than doubles to Rs 1,350 crore

In absolute terms, gross domestic advances grew Rs 4.32 lakh crore in Q4FY23, from Rs 3.94 lakh crore in Q4FY22.

Retail gross advances grew 17.40 percent on year, whereas, corporates and others grew 12.07 percent, according to the lender's investor presentation.

Total retail loans of the bank grew 17.40 percent on-year to Rs 94,716 crore. On a sequential basis, retail advances grew 3.66 percent.

The major contributor in the retail loan book was vehicle loans, which rose 31.21 percent on-year.

Net interest margins

Further, on the net interest margins (NIM) front, management said they are able to sustain margins above 3 percent going forward.

"We see good margins from mid-corporate segments on which we are currently focusing on and also some margins from overseas business. Hence, we will be able to sustain margins above 3 percent," Executive Director Swarup DasGupta told Moneycontrol on the sidelines of the press conference.

As per the investors presentation of Bank of India, NIM rose from 2.48 percent in March 2021, to 3.01 percent in March 2023.

Within NIM, domestic NIM of the bank has seen a sharp improvement to 3.59 percent in the reporting quarter, as against 2.90 percent in the same quarter last year.

Similarly, overseas NIM improved to 1.09 percent in Q4FY23, from 0.86 percent in Q4FY22.

Also read: Union Bank sees 10-12% credit growth in FY24

Fund raising plans

Bank of India is likely to raise funds from the market in the second quarter of the current financial year, says DasGupta.

"We are not planning any issues in the current quarter, but probably in next quarter we may expect because market is volatile currently," DasGupta told Moneycontrol.

On April 18, the bank's board approved raising of capital for the FY 2023-24 aggregating upto Rs 6,500 crore.

The fund raising can be expected through issue of fresh Equity Capital in the form of FPO / QIP / Rights Issue / Preferential Issue and / or Basel III compliant Additional Tier-1 (AT-1) bonds (domestic and foreign currency) upto an amount of Rs 4,500 crore and issue of Basel III compliant Tier-2 bonds upto Rs 2,000 crore, it had said.