Bank of India , one of India's leading public sector banks, has reported strong growth figures for the first quarter of the fiscal year 2024. The bank's performance showcases significant improvements across key financial metrics, indicating a positive trajectory in its business operations.

Domestic Business Growth

Bank of India witnessed substantial growth in its domestic business during Q1 FY24:

• Domestic Deposits: Increased by 9.6% year-over-year, reaching Rs 7.1 lakh crore
• Domestic Advances: Surged by 11% to Rs 5.64 lakh crore

This growth in domestic advances suggests an uptick in lending activities, potentially reflecting increased economic activity and consumer confidence in the banking sector.

Global Business Expansion

The bank's global business also showed impressive growth:

• Global Business: Grew by 10% to reach Rs 15 lakh crore

This increase in global business indicates Bank of India's expanding international presence and its ability to capture opportunities in the global market.

Key Highlights

The robust growth across these key areas demonstrates Bank of India's strong performance in the first quarter of FY24. The significant increase in domestic advances, coupled with growth in deposits and global business, positions the bank favorably in the competitive banking landscape.

As the financial year progresses, stakeholders will be keen to observe if Bank of India can maintain this growth momentum and how it translates into overall profitability and market position.

Bank of India (BOI) has announced a reduction in its Marginal Cost of Funds-based Lending Rate (MCLR) across all tenors, signaling a potential easing of borrowing costs for its customers. The state-owned lender will implement this change starting July 1, 2025.

Key Points of the Rate Adjustment

• MCLR Reduction: Bank of India has cut its MCLR by 5 basis points (bps) across all tenors.
• New 1-Year MCLR: The benchmark 1-year MCLR has been revised downward to 9.00% from the previous 9.05%.
• Implementation Date: The new rates will come into effect on July 1, 2025.

Impact on Retail Loans

The bank has also provided details on its retail loan pricing:

• Fixed Rate Spread: Set at 1.50% for retail loans.
• Benchmark for Fixed-Rate Retail Loans: These loans will be benchmarked to the 3-year MCLR, which now stands at 10.65%.

Other Rate Information

• Repo-Based Lending Rate: Remains unchanged, indicating that the bank's decision is specific to its MCLR-linked products.

This move by Bank of India could potentially lead to slightly lower interest rates for borrowers with MCLR-linked loans. However, the actual impact on individual borrowers may vary depending on their loan terms and reset dates.

The reduction in MCLR, albeit small, comes at a time when the banking sector is navigating through various economic factors. While this adjustment might provide some relief to borrowers, it's important to note that the overall lending environment remains subject to broader market conditions and regulatory policies.

Customers with existing loans or those considering new borrowings from Bank of India are advised to contact their local branch or relationship manager for personalized information on how these changes might affect their specific loan products.