Bank of India fell over 8 percent, its steepest fall in five week, on Tuesday after it reported divergence in its asset classification for the December quarter, resulting in lower net profit.
The stock lost as much as 8.3 percent, its maximum fall since December 9, 2022 to Rs 89.60 a share. At 1.10pm, the stock was trading at Rs 93.30 on the BSE, down 5 percent from its previous close.
The state lender reported just a 12 percent rise in net profit for the December quarter to Rs 1,151 crore from a year ago.
Net interest income, or the income a bank earns by giving loans, jumped 64 percent on-year to Rs 5,596 crore. Other income dropped nearly 22 percent on-year to Rs 1,432 crore from Rs 1,835 crore.
Provisions and contingencies rose 461 percent from a year ago to Rs 1,878 crore versus Rs 334.93 crore.
The lender said in its earnings release that the RBI pointed out financial divergence in respect of certain standard assets on account of non-maintenance of additional provision of Rs 1,419 crore, where resolution plan was not implemented as on March 31, 2022 in accordance with the RBI circular.
Gross non-performing assets (NPAs) fell 15 percent to Rs 38,884.61 crore at the end of the December quarter from Rs 45,759.76 crore in the same quarter of the previous year.
As a percentage of total loans, gross NPAs stood at 7.66 percent, compared to 8.51 percent in the previous quarter and 10.46 percent a year ago. Net NPAs were at 1.61 percent in the December quarter compared to 1.92 percent in the previous quarter and 2.66 percent last year.
Advances for the quarter rose 18.47 percent to Rs 4.76 lakh crore from a year ago. Deposits rose 5 percent to Rs 6.54 lakh crore.
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!
