Money & Banking

Bank of India posts Q3 profit of ₹106 crore

Our Bureau Mumbai | Updated on January 31, 2020 Published on January 31, 2020

Bank of India reported a net profit of ₹106 crore in the third quarter ended December 31, 2019, against a net loss of ₹4,738 crore in the year-ago quarter.

This is the fourth successive quarter that the public sector bank has logged a net profit. However, the net profit in the reporting quarter is lower than preceding quarter’s ₹266 crore.

Net interest income rose 24 per cent year-on-year (y-o-y) to ₹4,119 crore in the reporting quarter against ₹3,332 crore in the year-ago quarter. Non-interest income jumped 50 per cent y-o-y to ₹2,503 crore in the reporting quarter against ₹1,669 crore in the year-ago quarter. This was mainly due to a marked improvement in recovery in written-off accounts, which soared to ₹1,337 crore from ₹262 crore.

In the reporting quarter, the bank’s slippages were higher at ₹6,716 crore against ₹3,166 crore in the preceding quarter.

Recovery, upgradation

However, recovery and upgradation improved to ₹3,212 crore (₹966 crore in the preceding quarter) and ₹447 crore (₹294 crore).

Provisions for bad and doubtful debt jumped to ₹3,774 crore against ₹1,452 crore in the preceding quarter.

Asset quality pressure

Gross non-performing assets (GNPAs) were almost flat at 16.30 per cent of gross advances against 16.31 per cent in the year-ago quarter. Net non-performing assets nudged up to 5.97 per cent of net advances against 5.87 per cent in the year ago quarter.

Global deposits nudged up 1.36 per cent y-o-y to ₹5,22,138 crore, solely on the back of a 9.68 per cent growth in domestic deposits. Foreign deposits de-grew 32.45 per cent.

Similarly, global advances inched up 1.58 per cent y-o-y to ₹3,78,686 crore, only on account of a 6.71 per cent growth in domestic advances. Foreign advances de-grew 24.65 per cent. On Friday, the shares of Bank of India closed at ₹67.75 apiece, up 2.57 per cent over the previous close on the BSE.

Published on January 31, 2020
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