Bank of India gains 6% as assets quality improves in Q1

The stock was up 6% to Rs 163, bouncing back 9% from its early morning low of Rs 149 on BSE

Bank of India rose 6% to Rs 163, bouncing back 9% from its early morning low of Rs 149 on BSE, after the bank’s assets quality improves sequentially as well as on yearly basis in June quarter (Q1FY18).

Gross non-performing assets (NPA) as a percentage of total loans fell to 13.05% at end-June from 13.22% at March-end and 13.38% at end-June last year. Net NPA too decline to 6.7% in Q1FY18 from 6.9% in Q4FY17 and 7.78% in Q1FY17.

The bank has reported a net profit of Rs 87.71 crore during the quarter under review, due to lower provisioning for bad loans. It had posted a loss of Rs 741 crore in the same quarter last fiscal.

Net interest income (interest earned minus interest expended) however declined by 9% to Rs 2,533 crore from Rs 2,775 crore in the corresponding quarter of previous fiscal.