Bank of India Auditor Reports

To

The Members of Bank of India

Report on the Audit of the Standalone Financial Statements Opinion

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

AccountingincludingPoliciesSignificant 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 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 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 by those Standards are further described in the Auditors 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.

Sr Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
1 Compliance of Income Recognition, Asset Classification and Provisioning Norms on advances and investments as Der guidelines issued bv Reserve Bank of India (IRAC Norms)	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: 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.	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.
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.	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.
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.	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.
The bank has implemented IRAC Automation software for identification and classifying of NPA accounts through the software.	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.
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.
	e) Reliance on the internal audit reports, concurrent audit reports, credit audit, system audit and special audits conducted by the bank.
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.	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.
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.
	b) Testing on sample basis whether the classification and valuation of investments is carried out as per the guidelines of Reserve Bank of India.
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.
	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.

 

2 Evaluation of uncertain tax litigations and contingent liabilities	Our audit procedure included:
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.	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 managements 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 managements position on these uncertain tax positions.

 

Sr Key Audit Matters	Audit Procedure followed to address the Key Audit Matters
3 Assessment of Information Technoloav (IT):	Our audit procedure included:
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 svstems.	a) Obtained an understanding of the Banks 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.
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.
	c) Reviewed the design, implementation and operating effectiveness of the Banks 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.

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 branchs 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 . ofthese matters

Information Other than the Financial Statements and Auditors Report thereon

5. The Banks Board of Directors is responsible for the preparation of the Other Information. The other information comprises the information included in the Management report and Chairmans Statement (including annexures in the Annual Report) but does not include the Standalone Financial Statements and our Auditors 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 identifiedabove 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 Banks 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 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, thatwereoperatingeffectivelyfor 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 Banks 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 Banks financial reporting process.

Auditors 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 auditors 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, of the Bank designin accordance and perform audit procedures responsive to those risks, and obtain audit evidence that is 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 thatsignificantdoubt may on the cast Banks ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors 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 auditors 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 We consider quantitative materiality and be influenced. 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 significantaudit findings, including and deficiencies in internal control that we identify anysignificant 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 auditors 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 Auditors 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 Banks internal financial controls over financial reporting as required by the RBI Letter DOS.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 Banks 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.

Annexure-A to Independent Auditors Report

Referred to in Paragraph 10(e) of the Independent Auditors Report of even date to the members of Bank of India on the Standalone Financial Statements for the year ended March 31, 2025 the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.

5. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal financial controls based on the assessed risk. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

6. We believe that the audit evidence we have obtained and the audit evidence obtained by the branch auditors, in terms of their reports referred to in the Other Matters paragraph below, is sufficient audit opinion on the Banks internal financial controls over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting with reference to Standalone Financial Statements

7. A Banks internal financial controls over financial reporting with reference to Standalone Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Banks internal financial controls over financial reporting with reference to

Standalone Financial Statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Bank; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Bank are being made only in accordance with authorisations of management and directors of the Bank; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Banks assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

8. Because of the inherent limitations of internal financial controls over financial reporting with reference to standalone financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting with reference to Standalone Financial Statements to future periods are

Report on the Internal Financial Controls Over Financial Reporting as required by the Reserve Bank of India (the "RBI") Letter DOS.ARG.No.6270/08.91.001/2019-20 dated March 17, 2020 (as amended) (the "RBI communication") Opinion

1. We have audited the internal financial controls over financial reporting with reference to Standalone Financial Statements of Bank of India ("the Bank") as of March 31, 2025 in conjunction with our audit of the Standalone Financial

Statements of the Bank for the year ended on that date which includes internal financial controls over financial reporting with reference to Standalone Financial Statements of the

Banks branches.

2. In our opinion, and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the branch auditors referred to in the "Other Matters" paragraph below, the Bank has, in all material respects, adequate Internal Financial Controls over

Financial Reporting with reference to Standalone Financial

Statements and such Internal Financial Controls over

Financial Reporting with reference to Standalone Financial

Statements were effectivelyas at March 31, operating

2025, based on the criteria for internal control over financial reporting established by the Bank considering the essential components of internal control stated in the Guidance

Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (the "ICAI").

Managements Responsibility for Internal Financial Controls

3. The Banks management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Banks policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Banking Regulation Act, 1949 and the circulars and guidelines issued by the Reserve Bank of India

Auditors Responsibility

4. Our responsibility is to express an opinion on the Banks internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") issued by the ICAI and the Standards on Auditing (SAs) issued by the ICAI, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform subject to the risk that the internal financial controls over financial reporting with reference to Standalone Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Other Matters

9. Our aforesaid report, insofar as it relates to the operating effectiveness of internal financial controls over financial reporting of 1843 domestic branches and processing centres and 22 foreign branches is based on the corresponding reports of the respective branch auditors of those branches.

Our opinion is not modified in respect of this matter

For S. Jaykishan	For A. Bafna & Co.
Chartered Accountants	Chartered Accountants
(FRN: 309005E)	(FRN: 003660C)
Nemai Gorai	Vivek Gupta
Partner // ICAI M. No. 057892	Partner // ICAI M. No. 400543
UDIN: 25057892BMHYOI5401	UDIN: 25400543BMLIFJ9974
For SCV & Co. LLP	For SARDA & PAREEK LLP
Chartered Accountants	Chartered Accountants
(FRN:000235N / N500089)	(FRN:109262W/W100673)
Ashish Agarwal	Giriraj Soni
Partner // ICAI M. No. 093790	Partner // ICAI M. No. 109738
UDIN: 25093790BMJKLV1520	UDIN: 25109738BMHWMY1247

Place: Mumbai Date: May 9, 2025