Public sector lender Bank of India has reported a solid 155 percent year-on-year growth in June quarter profit at Rs 242.62 crore on lower provisioning but asset quality deteriorated further.
Impacted by higher provisioning, the company had reported a profit of Rs 95.11 crore in the year-ago period. The bottomline in Q1FY20 was supported by higher other incomes and operating profit.
Net interest income grew by 3.9 percent year-on-year to Rs 3,485.4 crore in June quarter with tepid loan growth of 1.6 percent YoY.
Numbers missed analyst expectations. Profit was expected at Rs 306.8 crore and net interest income at Rs 3,915.5 crore, according to a poll of analysts conducted by CNBC-TV18.
On the asset quality front, gross non-performing assets as a percentage of gross advances increased 66bps sequentially to 16.50 percent and net NPA as a percentage of net advances climbed 18bps QoQ to 5.79 percent in Q1.
Provisions during the quarter fell sharply by 25.43 percent to Rs 1,911.98 crore compared to the year-ago period, but sequentially the same increased by 0.8 percent.
The bank managed to improve its provision coverage ratio to 77.18 percent in Q1, from 76.95 percent in previous quarter.
Bank of India said it held 100 percent provision on NCLT accounts of Rs 5,927.5 crore.
Non-interest income (other income) grew by 93.3 percent year-on-year to Rs 1,194.8 crore and operating profit increased by 21.5 percent to Rs 2,271.35 crore in quarter ended June 2019.
The stock hit a fresh 52-week low of Rs 70.55 after earnings. It was quoting at Rs 71.20, down Rs 4.45, or 5.88 percent on the BSE at 1250 hours.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
