Bank of India's net profit doubles to Rs 622 crore in the July to September quarter, 2013, driven by lower bad loans and improved margins and interest income.

The public sector bank’s net profit was at Rs 302 crore in the year-ago period.

Net interest income (difference between interest earned and expended) grew 15 per cent to Rs 2,527 crore from Rs 2,196 crore. Non-interest income rose 23 per cent to Rs 1,100 crore during the quarter from Rs 894 crore in the second quarter last year.

Shares jump 20%

The shares of Bank of India soared over 20 per cent to close at Rs 209.90 per share on the Bombay Stock Exchange.

The bank absorbed treasury losses worth Rs 646 crore during the quarter providing two-third upfront on the losses.

Total advances jumped 29 per cent to Rs 3.37 lakh crore as on September 30, 2013, from Rs 2.60 lakh crore, while total deposits increased 30 per cent to Rs 4.32 lakh crore from Rs 3.33 lakh crore as on September last year.

Healthy recoveries

Healthy recoveries and lower bad loans helped gross non-performing asset (NPA) ratio improve to 2.93 per cent in September quarter from 3.42 per cent in September end, 2012. Net NPA ratio also was up at 1.85 per cent as on September end, 2013 from 2.04 per cent in September quarter last year.

“Good rated public sector credit boosted our advances and recoveries,” said V.R. Iyer, Chairperson and Managing Director, Bank of India.

During the quarter, net interest margin also increased to 2.39 per cent from 2.35 per cent.

EPS nearly doubled to Rs 10.43 from Rs 5.26. The operating profit was up 13.43 per cent.