Economy

Bank of India posts ₹266 cr. profit as bad loan provisions fall

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Slippages to NPAs down to ₹3,166 cr.

State-run lender Bank of India (BoI) reported a ₹266 crore net profit for the second quarter, compared with a loss of ₹1,156 crore reported during the same period of the previous year due to a fall in provisioning for bad loans.

Net interest income rose by 32% from ₹2,927 crore in the corresponding period of the previous year to ₹3,860 crore, while non-interest income grew by 29% to ₹1,327 crore. The operating profit rose 49% to ₹2,460 crore.

Slippages to non-performing assets reduced both sequentially and on a year-on-year basis.

“From ₹3,683 crore during Q1, it came down to ₹3,166 crore during Q2 FY 2019,” the bank said in a statement.

Provision for bad loans almost halved to ₹1,452 crore for the quarter as compared to ₹2,827 crore recorded during the second quarter of the previous financial year. As a result, asset quality improved, with gross NPA ratio coming down to 16.31% from 16.36% a year ago and 16.5% in previous quarter.

The lender also reported an increase in margins, with net interest margins from domestic operations going up from 2.65% to 3.36% on a year-on-year basis.

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Printable version | Dec 15, 2019 3:19:31 AM | https://www.thehindu.com/business/Economy/bank-of-india-posts-266-cr-profit-as-bad-loan-provisions-fall/article29857224.ece

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