1. We have audited the accompanying Standalone Financial
Statements of Bank of India (‘the Bank'), which comprise
the Balance Sheet as at March 31, 2025, the Profit and
Loss Account and the Cash Flow Statement for the year
then ended, and notes to Standalone Financial Statements
including Significant Accounting Policies and other
explanatory information in which are included returns for the
year ended on that date of:
(i) 20 Domestic branches, Treasury Branch and 14 other
offices (Head-office and 13 FGMO Offices) audited by
us;
(ii) 1843 domestic branches and processing centres
audited by respective Statutory Branch Auditors and
(iii) 22 Foreign branches audited by respective local
Auditors.
The branches audited by us and those audited by other
auditors have been selected by the Bank in accordance with
the guidelines issued to the Bank by the Reserve Bank of
India. Also included in the Balance Sheet, the Profit and Loss
Account and Cash Flow Statement are the returns from 4328
domestic branches and Nil foreign branch which have not
been subjected to audit. These unaudited branches account
for 15.92 % of advances, 33.54 % of deposits, 12.07% of
interest income and 27.10 % of interest expenses.
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid Standalone
Financial Statements give the information required by the
Banking Regulation Act, 1949 in the manner so required for
the bank and are in conformity with accounting principles
generally accepted in India and:
a) the Balance Sheet, read with the notes thereon is a full
and fair Balance Sheet containing all the necessary
particulars, is properly drawn up so as to exhibit a true
and fair view of the state of affairs of the Bank as at
March 31,2025;
b) the Profit and Loss Account, read with the notes
thereon shows a true balance of profit; and
c) the Cash Flow Statement gives a true and fair view of
the cash flows for the year ended on that date.
Basis for Opinion
2. We conducted our audit in accordance with the Standards
on Auditing (SAs) issued by the Institute of Chartered
Accountants of India (the “ICAI”). Our responsibilities under
those Standards are further described in the Auditor's
Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the
Bank in accordance with the Code of Ethics issued by the
ICAI together with ethical requirements that are relevant to
our audit of the financial statements prepared in accordance
with the accounting principles generally accepted in India,
including the ICAI Accounting Standards, as amended from
time to time subject to Directions/Guidelines issued by the
Reserve Bank of India, and provisions of section 29 of the
Banking Regulation Act, 1949 and circulars and guidelines
issued by the Reserve Bank of India (‘RBI”) from time to
time and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion..
Key Audit Matters
3. Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
Standalone Financial Statements for the year ended March
31, 2025. These matters were addressed in the context
of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide a
separate opinion on these matters. We have determined the
matters described below to be the Key Audit Matters to be
communicated in our report.
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Key Audit Matters
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Audit Procedure followed to address the Key Audit Matters
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1
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Compliance of Income Recognition, Asset Classification and
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We have carried out the audit of the advances and investments
based on the IRAC Norms/Circulars and directives issued by
Reserve Bank of India and the policy of the Bank.
Advances: Our audit procedure included:
a) Understanding the IT system and controls put in place
and logic and validations built in the system by the bank
for identification, classification and provisioning in case
of advances.
b) Testing on sample basis whether the classification
of advances as performing or non-performing and
provisioning have been carried out as per the guidelines
of Reserve Bank of India.
c) Communication to the Statutory Branch Auditors (SBAs)
to verify the compliance of IRAC Norms and procedures
and the policies adopted by the bank and reliance on the
audit reports furnished by the SBAs.
d) Carrying out substantive test on major advances
including Specially Mentioned Accounts (SMA) and also
verification of security by checking the valuation reports
in respect of the audit of branches conducted by us.
e) Reliance on the internal audit reports, concurrent audit
reports, credit audit, system audit and special audits
conducted by the bank.
Investments: Our audit procedure included:
a) Understanding the IT system and controls put in place
and logic and validations built in the system by the bank
for identification, classification and provisioning in case
of investments.
b) Testing on sample basis whether the classification
and valuation of investments is carried out as per the
guidelines of Reserve Bank of India.
c) Verification on sample basis whether proper provision
for depreciation in the value of investments is made as
per RBI guidelines.
d) Reliance made on the internal audit reports, concurrent
audit reports and system audit conducted by the bank.
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Provisioning Norms on advances and investments as Der guidelines
issued bv Reserve Bank of India (IRAC Norms)
Advances: Bank has to classify the accounts as Derformina
advances or non-performing advances based on the guidelines/
circulars and directives issued by Reserve Bank of India. The
guidelines issued by Reserve Bank of India is for all credit facilities
given by the bank and is to be mandatorily followed for the purpose
of Income Recognition, Asset Classification and Provisioning.
Identification of performing and non-performing advances is system
driven. The software used by the bank identifies the accounts for
classification and provisioning as per the guidelines issued by
Reserve Bank of India.
The Income recognition, asset classification and provisioning if not
done properly as per the IRAC norms issued by Reserve Bank of
India may materially impact the financial statements of the bank.
The bank has implemented IRAC Automation software for
identification and classifying of NPA accounts through the software.
Investments: Bank has to classify the investments as performing
or non-performing based on the guidelines/circulars and directives
issued by Reserve Bank of India.
Identification of performing and non-performing investments is
generally system driven.
The valuation is done as per the guidelines issued by Reserve Bank
of India and the valuations are done based on the price quoted on
BSE/NSE, FIMDA /FBIL rates etc.
The Income recognition, asset classification and provisioning if not
done properly as per the IRAC norms issued by Reserve Bank of
India may materially impact the financial statements of the bank.
Advances and Investments constitute 62.31% and 24.85%
respectively of total assets of the bank. As advances and
investments form part of a major portion of the business of the bank
and the regulatory compliances are involved, we have considered
this aspect as Key Audit Matter.
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2
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Evaluation of uncertain tax litigations and contingent liabilities
The Bank has various litigations including Income-tax litigations,
involving disputed claims against those litigations, which are
pending at various courts / forums and are at various stages in the
judicial process. Bank has also disputes regarding availability of
input credits / applicability of Reverse Charge Mechanism on certain
payments under Indirect Tax.
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Our audit procedure included:
a) Understanding the current status of the litigations / tax
assessments. Also obtained details of completed tax
assessments and latest orders, communication received
from various tax authorities and the appeals filed till the
year ended March 31,2025, from the management.
b) Evaluating the management's underlying assumptions
in estimating the tax provision and the possible
outcome of the disputes. This includes considering
the legal precedence and other rulings in evaluating
management's position on these uncertain tax positions.
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Key Audit Matters
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Audit Procedure followed to address the Key Audit Matters
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3
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Assessment of Information Technology (IT):
a. IT controls with respect to recording of transactions, generating
various reports in compliance with RBI guidelines including IRAC
norms, preparing financial statements and reporting of compliances
to regulators etc. is an important part of the process. Such reporting
is highly dependent on the effective working of Core Banking
Software and other allied systems.
We have considered this as key audit matter as any control lapses,
validation failures, incorrect input data and wrong extraction of
data may result in wrong reporting of data to the management and
regulators.
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Our audit procedure included:
a) Obtained an understanding of the Bank's IT control
environment and key changes during the audit period
that may be relevant to the audit.
b) Reviewed the Reports of various IS Auditors /
Consultants appointed by the Bank and discussed
with IT Department on compliance with key IT controls,
including IRAC Automation Controls.
c) Reviewed the design, implementation and operating
effectiveness of the Bank's IT controls including
application, access controls that are critical to financial
reporting on test check basis.
d) Where we identified the need to perform additional
procedures, we placed reliance on manual compensating
controls; such as reconciliations between systems and
other information sources or performing additional
testing; extended our sample sizes, to obtain adequate
and appropriate audit evidence.
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Other Matter
4. We did not audit the financial statements / financial information
of 1787 branches and processing centres including 22
foreign branches included in the Standalone Financial
Statements of the Bank whose financial statements/financial
information reflects total assets of Rs.234960.07 Crore at
March 31, 2025 and total revenue of Rs.19251.13 Crore for
the year ended on that date as considered in the Standalone
Financial Statements. These branches and processing
centres cover 31.67% of advances, 47.18% of deposits and
30.13 % of Non-performing assets as on March 31, 2025
and 24.84 % of revenue for the period April 1,2024 to March
31, 2025.The Financial statements/financial information of
these branches and processing centres have been audited
by the branch auditors whose reports have been furnished to
us, and in our opinion, in so far as it relates to the amounts
and disclosures included in respect of these branches and
processing centres, are solely based on the report of such
branch auditors.
In conduct of our audit, we have taken note of the unaudited
returns in respect of 4328 domestic branches and Nil foreign
branch certified by the respective branch's management.
These unaudited branches cover 15.92 % of advances,
33.54 % of deposits and 16.63% of non-performing assets
as on March 31,2025 and 12.74 % of revenue for the period
April 1,2024 to March 31,2025.
The accompanying Standalone Financial Statements
includes comparative figures for the year ended March 31,
2024, which have been audited by an earlier set of four
audit firms as joint auditors, who have expressed unmodified
opinion vide their audit report dated May 10, 2024, and three
of those four audit firms are continuing audit firms.
Our opinion is not modified in respect of these matters.
Information Other than the Financial Statements and Auditors
Report thereon
5. The Bank's Board of Directors is responsible for the
preparation of the Other Information. The other information
comprises the information included in the Management
report and Chairman's Statement (including annexures in
the Annual Report) but does not include the Standalone
Financial Statements and our Auditor's report thereon, which
is expected to be made available for us after the date of this
Auditors' Report.
Our opinion on the Standalone Financial Statements does
not cover the Other Information and Pillar 3 disclosures
under Basel III Disclosure and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the Standalone Financial
Statements, our responsibility is to read the Other Information
identified above and, in doing so, consider whether the Other
Information is materially inconsistent with the Standalone
Financial Statements. or our knowledge obtained in the
audit, or otherwise appears to be materially misstated.
When we read the other information, if we conclude that
there is material misstatement therein, we are required to
communicate the matter to those charged with governance
and determine the actions under the applicable laws and
regulations.
Responsibilities of Management and Those Charged with
Governance for the Standalone Financial Statements
6. The Bank's Board of Directors is responsible with respect
to the preparation of these Standalone Financial Statements
that give a true and fair view of the financial position, financial
performance and cash flows of the Bank in accordance
with the accounting principles generally accepted in India,
including the Accounting Standards issued by the ICAI, and
provisions of Section 29 of the Banking Regulation Act, 1949
and circulars and guidelines issued by the Reserve Bank
of India (‘RBI') from time to time. This responsibility also
includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding
of the assets of the Bank and for preventing and detecting
frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and
estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, the Board
of Directors are responsible for assessing the Bank's ability
to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern
basis of accounting unless management either intends to
liquidate the Bank or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors is also responsible for overseeing the
Bank's financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone
Financial Statements
7. Our objectives are to obtain reasonable assurance about
whether the Standalone Financial Statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these Standalone
Financial Statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. As required by
the RBI letter DOS.ARG.No.6270/08.91.001/2019-
20 dated March 17, 2020 (as amended), we are also
responsible for expressing our opinion on whether
the Bank has adequate internal financial controls with
reference to the Standalone Financial Statements in
place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the Board of
Directors.
• Conclude on the appropriateness of the Board of
Directors' use of the going concern basis of accounting
and, based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Bank's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor's report to
the related disclosures in the Standalone Financial
Statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our
auditor's report. However, future events or conditions
may cause the Bank to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and
content of the Standalone Financial Statements,
including the disclosures, and whether the Standalone
Financial Statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of the misstatements in the
financial statements that, individually or aggregate, makes
it probable that the economic decisions of a reasonably
knowledgeable user of the financial statements may
be influenced. We consider quantitative materiality and
qualitative factors in (i) planning of the scope of our audit
work and evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatement in the
financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the Standalone Financial
Statements of the current period and are therefore the key
audit matters.
We describe these matters in our auditor's report unless law
or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because
the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such
communication.
Report on Other Legal and Regulatory Requirements
8. The Balance Sheet and the Profit and Loss Account have
been drawn up in accordance with Section 29 of the Banking
Regulation Act, 1949;
9. Subject to the limitations of the audit indicated in paragraphs
on Auditor's Responsibilities (para 7), Management
Responsibilities (para 6) and Other matters (para 4) above
and as required by the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970/1980, and subject also
to the limitations of disclosure required therein, we report
that:
a) We have obtained all the information and explanations
which, to the best of our knowledge and belief, were
necessary for the purposes of our audit and have
found them to be satisfactory;
b) The transactions of the Bank, which have come to our
notice, have been within the powers of the Bank; and
c) The returns received from the offices and branches of
the Bank have been found adequate for the purposes
of our audit.
10. As required by letter No. DOS.ARG.No.6270/08.91.001/2019-
20 dated March 17, 2020 on “Appointment of Statutory
Central Auditors (SCAs) in Public Sector Banks-Reporting
obligations for SCAs from FY: 2019-20”, read with subsequent
communication dated May 19, 2020 issued by the RBI, we
further report on the matters specified in paragraph 2 of the
aforesaid letter as under:
a) In our opinion, the aforesaid Standalone Financial
Statements comply with the Accounting Standards
issued by ICAI, to the extent they are not inconsistent
with the accounting policies prescribed by the RBI.
b) There are no observations or comments on financial
transactions or matters which have any adverse effect
on the functioning of the bank.
c) As the bank is not registered under the Companies
Act, 2013 the disqualifications from being a director of
the bank under sub-section (2) of Section 164 of the
Companies Act, 2013 do not apply to the bank.
d) There are no qualifications, reservations or adverse
remarks relating to the maintenance of accounts and
other matters connected therewith.
e) Our audit report on the adequacy and operating
effectiveness of the Bank's internal financial controls
over financial reporting as required by the RBI Letter
D0S.ARG.No.6270/08.91.001/2019-20 dated March
17, 2020 (as amended) is given in Annexure A to this
report. Our report expresses an unmodified opinion
on the Bank's internal financial controls over financial
reporting as at March 31,2025.
11. We further report that:
a) in our opinion, proper books of account as required by
law have been kept by the Bank so far as it appears
from our examination of those books and proper
returns adequate for the purposes of our audit have
been received from branches and processing centres
not visited by us;
b) the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt with by this report are
in agreement with the books of account and with the
returns received from the branches and processing
centres not visited by us;
c) the reports on the accounts of the branch offices audited by branch auditors of the Bank under section 29 of the Banking
Regulation Act, 1949 have been sent to us and have been properly dealt with by us in preparing this report; and
d) In our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement comply with the applicable
accounting standards, to the extent they are not inconsistent with the accounting policies prescribed by Reserve Bank of India.
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For S. Jaykishan
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For A. Bafna & Co.
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Chartered Accountants
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Chartered Accountants
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(FRN: 309005E)
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(FRN: 003660C)
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Nemai Gorai
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Vivek Gupta
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Partner // ICAI M. No. 057892
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Partner // ICAI M. No. 400543
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UDIN: 25057892BMHYOI5401
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UDIN: 25400543BMLIFJ9974
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For SCV & Co. LLP
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For SARDA & PAREEK LLP
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Chartered Accountants
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Chartered Accountants
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(FRN:000235N / N500089)
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(FRN:109262W/W100673)
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Ashish Agarwal
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Giriraj Soni
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Partner // ICAI M. No. 093790
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Partner // ICAI M. No. 109738
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UDIN: 25093790BMJKLV1520
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UDIN: 25109738BMHWMY1247
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Place: Mumbai
Date: May 9, 2025
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