Bank of India Q1 net rises 8.5% to Rs. 95.11 cr.

Bank of India posted an 8.5% rise in net profit at Rs. 95.11 crore for the quarter ended June 30 as provision for bad loans stayed elevated. Provision for NPAs rose to Rs. 2,260 crore during the quarter, from Rs. 2,156 crore a year earlier. However, on a sequential basis, provisions declined from Rs. 6.699 crore.

“We have done well this quarter and have come back to black,” MD and CEO Dinabandhu Mohapatra, told reporters. “Growth in profits was on account of higher interest income, recovery from Bhushan Steel and reduction in costs.”

The gross NPA ratio was 16.66% as on June 30, compared to 13.05% a year earlier and 16.58% in end March. In absolute terms, gross NPAs shrank from the preceding quarter.

Net interest income rose 32.4% to Rs. 3,354 crore, from Rs. 2,533 crore. Provision coverage ratio improved both year-on-year and sequentially from 63.48% in June 2017, and 65.85% in March, to 66.67% in June 2018. Net interest margin improved to 2.49%, from 1.99%.

(
With PTI inputs
)

Source: Read Full Article