 "Bank of India swings back into profit in Q2 at Rs 127 cr")
Public sector Bank of India on Thursday reported net profit of Rs 126.84 crore in the second quarter ended September 30, from a net loss of Rs 1126.24 crore in the year ago quarter, aided by sale of its 18 per cent stake in Star Union Dai-ichi Life Insurance to LIC.
The bank earned Rs 495 crore pre-tax profit (Rs 323.60 crore post-tax) in the quarter out of the deal, the bank said in the footnote of its accounts.
The bank’s stock zoomed to Rs 120.25 a piece, up 9.46 per cent from its previous close.
Gross NPA ratio rose sharply year on year to 13.45 per cent of advances, from 7.55 per cent in the year ago period. In the first quarter ended June, the bank’s gross bad debt ratio was 7.78 per cent, the bank said in a filing with exchanges.
Provisions for non-performing assets rose to Rs 2189.6 crore from Rs 1030.15 crore in the year ago period. Total provisions fell to 2296.22 crore from Rs 3237.39 crore in the year ago period.
Total Income for the quarter was at Rs. 11,469.11 crore from Rs. 11,317.97 in the year ago period.