Bank of India Directors Report

Your Directors have pleasure in presenting the Banks Annual

Report with the audited Balance Sheet, Profit & Loss Account and

the Report on Business and Operations for the year ended March

31,2024.

PERFORMANCE:

Domestic Business:

> Overall Domestic Business of the Bank reported growth of 12.36% and reached at Rs 11,22,109 Crore as on

31.03.2024 as against Rs. 998,700 Crore as on 31.03.2023

> CASA deposits increased by 7.03% on y-o-y basis and stood at Rs. 269,872 Crore as on 31.03.2024. Share of low cost deposits (CASA), in domestic deposits stood at 43.21% as on 31.03.2024

> Total Domestic deposits increased by 11.05% and reached at Rs.629,717 Crore as on 31.03.2024 as against Rs. 567,063 Crore as on 31.03.2023

> Gross Domestic Advances registered growth of 14.08% YoY, reached at Rs 492,392 Crore as on 31.03.2024 from Rs. 431,637 Crore as on 31.03.2023

> Share of RAM Advances to Total advances is 55.74% (i.e. Rs. 274,477 Crore) as on 31.03.2024 as compared to 55.03% (i.e. Rs. 237,537 Crore) as on 31.03.2023

> Priority Sector lending constituted 44.08% of Adjusted Net Bank Credit and the share of Agricultural Credit to Adjusted Net Bank Credit was 20.30% as on 31.03.2024

> Retail Credit grew by 18.12% from Rs 94,381 Crore as on 31.03.2023 to Rs 111,484 Crore as on 31.03.2024. The share of Retail Credit to Total Domestic Credit was 22.64% as on 31.03.2024

> MSME Credit registered growth of 10.96% from Rs 70,777 Crore as on 31.03.2023 to Rs 78,533 Crore as on 31.03.2024. The share of MSME Credit to Total Domestic Credit was 15.95% as on 31.03.2024.

Overseas Business:

> Overseas business has increased by 7.85 % and reached at Rs. 201,406 Crore as on 31.03.2024 as compared to Rs. 186,738 Crore as on 31.03.2023

> Total Foreign Deposit registered a growth of 5.54 % and reached Rs. 108,203 Crore as on 31.03.2024 from Rs. 102,523 Crore as on 31.03.2023

> The Overseas CD Ratio stood at 86.14% as on 31.03.2024

Global Business:

> Gross Business of the Bank registered a growth of 11.65 % and reached Rs. 13,23,515 Crore as on 31.03.2024 from Rs. 11,85,438 Crore as on 31.03.2023

> Total deposits increased by 10.21% and reached Rs. 737,920 Crore as on 31.03.2024 from Rs.669,586 Crore as on 31.03.2023

> Gross Advances increased by 13.52% and reached Rs. 585,595 Crore as on 31.03.2024 from Rs. 515,852 Crore as

on 31.03.2023.

> The Global CD Ratio stood at 79.36% as on 31.03.2024 Financial Parameters:

> Operating Profit increased by 5.05% and reached Rs 14,069 Crore for FY 23-24 as against Rs. 13,393 Crore for FY 22-23

> The Bank registered Net profit of Rs 6,318 Crore in FY24 as against Rs.4,023 Crore in FY23 exhibiting a growth of 57.05% y-o-y

> Capital Adequacy Ratio stood at an improved level of 16.96% as on 31.03.2024 as against 16.28% as on 31.03.2023.

> Net Worth increased by 34.02% to Rs. 55,118 Crore as on

31.03.2024 from Rs. 41,127 Crore as on 31.03.2023

> Book value per share is Rs. 121.07 as of FY ended

31.03.2024

> Gross NPA improved by 22.56% (i.e. Rs. 8,502 Crore) and reached Rs 29,183 Crore as on 31.03.2024 from Rs 37,685 Crore as on 31.03.2023

> Gross NPA percentage reduced to an improved 4.98% as on

31.03.2024 from 7.31% as on 31.03.2023

> Net NPA showed an improvement by 15% (i.e. Rs. 1,209 Crore) reaching Rs 6,845 Crore as on 31.03.2024 as against Rs. 8,054 Crore as on 31.03.2023

> Net NPA percentage improved to 1.22% as on 31.03.2024 from 1.66% as on 31.03.2023

The Financial performance of the Bank for the year 2023-24 is summarized below:

(Amount in Crore)

Particulars	2022-23	2023-24	Growth (%)
Net Interest Income	20,275	23,053	13.70
Non-Interest Income	7100	6095	(14.16)
Operating Expenses	13982	15079	7.85
Operating Profit	13393	14069	5.05
Provisions / Contingencies	9370	7751	-17.28
Net Profit/ Loss	4023	6318	57.05
Earnings per share (Rs.)	9.80	14.90
Book Value per share (Rs.)	100.20	121.05
Return on Equity (%)	10.31	13.13
Return on Average Assets (%)	0.49	0.70

Key Financial Ratios are presented below:

Particulars	(Percentage) (%)
	2022-23	2023-24
Yield on Advances	7.37	8.38
Yield on Investments	6.51	6.75
Yield on Funds	6.15	7.03
Cost of Deposits	3.67	4.51
Cost of Funds	3.53	4.36

 

Particulars	(Percentage) (%)
	2022-23	2023-24
Net Interest Margin	3.01	2.97
Non Interest Income to Operating Expenses	50.78	40.42
Other Income to Average Working Fund	0.86	0.67
Operating Expenses to Average Working Fund	1.80	1.75
Staff Expenses to Average Working Fund	1.08	1.06
Other Operating Expenses to Average Working Fund	0.72	0.68
Asset Utilisation Ratio	1.73	1.63
Non Interest Income to Total Income	12.97	9.12
Non Interest Income to Net Income	25.94	20.91
Cost to Income Ratio	51.08	51.73

CAPITAL:

During the financial year 2023-24, Bank has raised:

1. Rs 2000 Crore by way of Tier-II bonds (Series XVI) on 15.09.2023

2. Rs 4500 Crore by way of QIP- Qualified Institutional Placement on 11.12.2023

CAPITAL ADEQUACY:

>? As per Basel III framework, Banks Capital Adequacy Ratio

was 16.96% as on 31.03.2024, which is higher than the regulatory requirement of 11.5 %.

>? Details of Capital Adequacy (BASEL III) are as under :

(Rs. in Crore)

Particulars	BASEL-III
	31.03.2023	31.03.2024
CET1 CRAR	48,232	13.60%	58,660	14.24%
AT1 CRAR	2,852	0.80%	2,852	0.69%
Tier I Capital	51,084	14.41%	61,512	14.93%
Tier II Capital	6,643	1.87%	8,395	2.03%
Total Capital	57,727	16.28%	69,907	16.96%
Risk Weighted Assets	3,54,534		4,12,078

BUSINESS INITIATIVES:

>? Bank of India was the first PSB to launch “Mahila Samman

Saving Certificate” - a flagship scheme of GOI

>? Bank has introduced Mobile Banking App - BOI MOBILE

OMNI NEO BANK, an Omni channel digital banking platform which is accessible to customers from Mobile and Internet banking

>? Bank has entered into tie up arrangement with the Warehouse

Development and Regulatory Authority (WDRA) aimed at

electronic negotiable warehouse receipts (e-NWR) financing and sensitizing farmers to avoid distress sales.

>? Bank has successfully integrated its Loan Management

System e-platform with Jansamarth portal and onboarded three mandated schemes in Jansamarth portal for capturing leads from market place

>? Bank has launched the digital journey of PMMY MUDRA,

Personal Loan, KCC, Gold Loan, Credit card, Saving Bank Account to onboard tech savvy customers and to increase the market share under Digital Business

>? Bank has on boarded Accenture Pvt. Ltd to enhance AI and

ML capabilities in enhancing quality business through better underwriting, customer experience and fraud prevention through DATA LAKE.

>? Bank has adopted Scheme for generation of Ethanol from

Feed stock which has been floated by the GOI. Further, Bank has introduced scheme for extending financial Assistance to Sugar Mills for Enhancement and Augmentation of the Ethanol Production Capacity.

>? Bank has centralized processing of Trade Finance

transactions and other FOREX business at GIFT City, Gandhinagar.

>? Bank has implemented TRRACS solution for faster

reconciliation of shipping bills and bills of entry on RBIs EDPMS Portal.

>? Migration to Core Banking Application for PT Bank of India

Indonesia Tbk subsidiary

>? Bank has introduced a new Credit Card variant under RuPay

Scheme- RuPay Select with benefits including offers on shopping Apps, Health Check up, Insurance cover of upto 10 Lakh, added Loyalty Rewards, lounge access, annual heath check-up, OTT membership, Concierge Services 24x7 domestic and internationally.

>? Bank has introduced BOI EarthSmart, recycled plastic

debit card, as one of its steps towards greener and more sustainable future for all

>? NRI Help Desk has been established for catering to NRI

customers and garnering NRI business

>? Bank has taken various staff welfare initiatives to improve

cordial working atmosphere under ESG (Environmental Social Governance) programme launched by Human Resources Department.

>? Initiation of HR Transformation Project-BOI STAR LIGHT

(Leading Innovation and Growth with human Talent) with Boston consulting group (BCG) which shall empower human resources for strategic growth and new age banking

>? Bank has launched Merchant Credit Card to improve the

penetration of bank on digital front.

>? Establishment of 18 Emerging Corporate credit branches to

augment mid segment Corporate business

>? Bank has introduced ‘BOI STAR Export Credit for canvassing

MSME & Agro classified export customers

>? 10 additional ARBs (Asset Recovery Branches) have been

operationalized for enhanced focus on recovery

>? Bank has introduced Co-lending product “BOI- IIFL HFL

Home Loan” - tie up with IIFL Home Loan Finance ltd.

>? Bank has introduced “BOI STAR EASY BIZ Loan” with FB

facility from Rs0.10 Cr. to Rs 1 Cr. and “BOI STAR INSTA MSME Loan” upto 10 Cr. to improve TAT and cater to urgent business requirements for MSME Borrowers

AWARDS:

Bank of India has received Gold award in 97^th SKOCH summit

& awards under Digital Transformation category for its

Universal Application Platform- OMNI NEO mobile app.

>? Bank of India has also received No. 1 performer CORPORATE

EXCELLENCE under India Involved Ranking in 97^th SKOCH summit & awards.

>? Bank has received National Award for outstanding

performance in SHG Bank linkage for FY 2022-23 from Ministry of Rural Development, Government of India in the month of Nov-23.

>? Our Bank stood at 2^nd Position among all PSBs in the “NPS

Diwas Award & Recognition Programme” of PFRDA from 11th Sept23 to 18th Oct23 during (Q3 of FY 2023-2024)

>? Bank received the prestigious “SKOCH AWARD 2023” for

overall performance in MSME

>? Bank has been nominated for “Annual APY Exemplary

Award of Excellence” for achieving 162% of Annual APY target (FY 2022-23) from PFRDA.

>? Shine and Succeed 2023 award from PFRDA for

performance in Atal Pension Yojana for the period 2^nd June 2023 to 30^th June 2023

>? ‘Rise above the Rest 2023 award from PFRDA for

performance from 1st July 2023 to 16th August 2023 in Atal Pension Yojana

>? Bank has won “NUMERO UNO” Award in ‘Old Age Financial Freedom” Campaign for best performer Bank in PSB for FY 2022-23

>? PT Bank of India Indonesia, the Subsidiary of our Bank has

been ranked as no. 1 bank in Indonesia in the category of “Best Conventional Bank under KBMI I Category as

declared by CNBC Indonesia.

Bank has received appreciation from Ministry of Food Processing top performance in the FY 2023-24 under PMFME Scheme

VISION, STRATEGY AND FUTURE OUTLOOK:

• Expand the Banks Retail, Agriculture and MSME (RAM) lending profile by leveraging its existing customer base.

• Continue to contain funding cost by sourcing low cost deposits such as CASA.

• Focus on improving asset quality and containing NPA levels.

• Leverage technology to increase cross selling opportunities, reduce cost and enhance customer experience.

• Improving Risk Management Systems to ensure long-term sustainability of our business.

DIRECTORS RESPONSIBILITY STATEMENT:

The Directors confirm that in the preparation of the annual accounts

for the year ended March 31,2024:

a) The applicable accounting standards have been followed along with proper explanation relating to material departures, if any,

b) The accounting policies framed in accordance with the guidelines of the Reserve Bank of India were consistently applied. Reasonable and prudent judgements and estimates were made so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit and loss of the Bank for the year ended March 31, 2024.

c) Proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of applicable laws governing banks in India for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities,

d) Annual accounts have been prepared on a going concern basis,

e) Internal financial controls system to be followed by the Bank were laid down and that such internal financial controls are adequate and were operating effectively,

f) Proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.