Bank of India Flags ₹616.30 Crore Rolta India Account as Fraud, Reports Strong Q3 FY25 Earnings

State-run Bank of India Ltd has classified a non-performing asset (NPA) linked to Rolta India Ltd, amounting to ₹616.30 crore, as fraud, as reported by CNBC TV18. The announcement was made on March 26 as part of its regulatory disclosure under SEBI (LODR) Regulations, 2015. The bank also reported strong financial performance for Q3 FY25, alongside a fresh overseas borrowing agreement.

Rolta India NPA Classified as Fraud

Bank of India said it has reported the ₹616.30 crore NPA related to Rolta India to the Reserve Bank of India (RBI) in line with regulatory norms. The classification is part of its ongoing monitoring and internal disclosure policies for non-performing accounts. This development is expected to impact the bank’s asset quality, although specific provisioning details were not disclosed.

Overseas Borrowing Agreement Secured

Separately, the bank’s IBU Gift City Branch has executed a facility agreement worth JPY 15 billion (approximately $100 million). The funds, expected to be received on March 27, 2025, will be used for on-lending and general corporate purposes through the bank’s overseas branches. This move strengthens the bank’s international funding base amid ongoing credit expansion.

Q3 FY25 Financial Performance

Bank of India reported a 35% year-on-year growth in net profit, reaching ₹2,517 crore in Q3 FY25, compared to ₹1,870 crore in Q3 FY24. On a sequential basis, profit rose 6% from ₹2,374 crore in Q2 FY25.

Operating profit grew 23% YoY to ₹3,703 crore, although it was lower than ₹4,147 crore in the previous quarter. Net Interest Income (NII) increased 11% YoY to ₹6,070 crore, up from ₹5,463 crore in Q3 FY24 and marginally higher than ₹5,986 crore in Q2 FY25.

Margins, Expenses, and Asset Returns

Operating expenses for the quarter stood at ₹4,114 crore, up from ₹3,653 crore a year ago, but down from ₹4,355 crore in Q2 FY25. The Net Interest Margin (NIM) was recorded at 2.80%, slightly below 2.85% in Q3 FY24 but better than 2.82% in the previous quarter.

The bank’s Return on Assets (RoA) improved by 14 basis points year-on-year to 0.96%, and was up 2 basis points sequentially from 0.94% in Q2 FY25, reflecting better earnings efficiency. Shares of Bank of India ended the day at ₹106.90 on March 28, down by 0.80%.

Conclusion

Despite flagging a large NPA linked to Rolta India as fraud, Bank of India posted a strong performance in Q3 FY25, supported by healthy growth in profit and interest income. With a fresh overseas borrowing facility and improving asset returns, the bank appears to be ready for the future.

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