Multibagger BoI stock crashes over 6% as provisions rise in Q3

Shares of Bank of India crashed over 6% intraday after the company announced its third quarter results. Its net profit for the third quarter rose 12% year on year to Rs 1,151 crore. The public sector lender had posted a net profit of Rs 1,027 crore in the corresponding period last year.

The net interest income came in at Rs 5,596 crore for the period under review, higher by 64% year on year. Meanwhile, the net interest margin (NIM) during the quarter improved to 3.28%.

The company's stock was last trading at Rs 92.60, down 5.37% from the previous close. Bank of India has given multibagger returns to investors in the last 6 months, offering nearly 98%. The stock has risen over 70% in the past one year.

Operating profit during the quarter increased 74% year on year at Rs 3,652 crore as against Rs 2,096 crore in the same quarter, last year. On a sequential basis, operating profit was up 8%.

On the asset quality front, gross non performing assets (GNPAs) declined 7% quarter on quarter to Rs 38,885 crore, while gross NPA ratio improved marginally to 7.66% during the December quarter.

Meanwhile, the net NPA ratio stood at 1.61% for the quarter under review. The provision coverage ratio (PCR) stood at 90.27% at the end of December quarter against 88.96% in September quarter.

The bank has made provisions (other than tax) and contingencies to the tune of Rs 1,878 crore, an increase of 462% over Rs 334 crore provisioned during the same period last year.

On the business front, domestic deposits increased marginally to Rs 5.56 trillion in the December quarter, while domestic advances increased 12% to Rs 4.26 trillion.

Retail credit during the quarter grew nearly 21% year on year to Rs 91,371 crore, while agriculture credit grew 9% year on year to Rs 70,334 crore for the December quarter.

Meanwhile, global business recorded 9% year-on-year growth to Rs 11.61 trillion, while global deposits rose nearly 5% to Rs 6.53 trillion in the third quarter.