 "Bank of India Q2 profit rides on Dai-ichi Life stake sale")
Public sector lender 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 1,126.24 crore in the year-ago quarter, aided by sale of its 18 per cent stake in Star Union Dai-ichi Life Insurance to the Life Insurance Corporation (LIC).
The bank earned Rs 495 crore as 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.
The gross non-performing assets (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 NPAs rose to Rs 2,189.6 crore from Rs 1,030.15 crore in the year-ago period.
Total provisions fell to Rs 2,296 crore from Rs 3,237 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.
