Bank of India Q2 profit Rs 266 cr as bad loan provisions fall

Bank of India

State-run Bank of India posted Q2 profit of over Rs 266 crore against a loss of Rs 1,156 crore in the year-ago period while its asset quality partly improved.

Bank of India reported a net profit of Rs 266.37 crore in the second quarter as against a net loss of Rs 1,156.25 crore in Q2 September 2018, its regulatory filing said. Provisions towards bad loans halved to Rs 1,452.09 crore in the July-September quarter from Rs 3,343.27 crore in the year-ago quarter.

The bank’s provisions and contingencies fell 38.61 per cent to Rs 2,052.27 crore in Q2 September 2019 over Q2 September 2018. Of this, provisions for NPAs fell 48.64 per cent to Rs 1,452.09 crore in Q2 September 2019 over Q2 September 2018.

Gross NPAs came down from Rs 62,068 crore in June 2019 to Rs 61,476 crore in September 2019 and slippages reduced both on QoQ and YoY basis as from Rs 3683 crore during Q1, it came down to Rs 3,166 crore during Q2 of FY 2019. There was marginal upside to gross NPA as Bank’s gross NPA ratio improved from 16.50 per cent in June 2019 to 16.31 per cent in September 2019. The Provision Coverage Ratio improved from 69.12 per cent in September 2018 and 77.12 per cent in September 2019. Net NPAs too declined to 5.77 per cent at September-end from 7.64 per cent in the year-ago period.

The bank’s operating profit went up from Rs 1,647 crore in September 2018 to Rs 2,460 crore in September 2019, registering an increase of 49.36 per cent.

The bank’s net interest income rose by 31.9 per cent from Rs 2,927 crore in September 2018 to Rs 3,860 crore in September 2019. The Non-Interest Income increased by 28.8 per cent from at Rs 1,030 crore in September 2018 to Rs 1,327 crore in September 2019.