Bank of India gets a thumbs up

Bank of India rose over 4% today morning to Rs.94.35; volumes are also robust, going up over 2 times.

The market is pretty happy with the performance of Bank of India (BoI) as its asset quality has shown some major improvement though on the operational front, loss has gone up as provisions have increased.

The Bank’s Gross NPA was marginally lower at 16.31% v/s 16.36% (QoQ) and Net NPA came down from 7.64% to 5.87%.

On the operational front, the Bank’s net loss was at Rs.4738 crore, almost doubled up from the loss of Rs.2341 crore in previous Q3. This was despite a 33% (YoY) increase in net interest income at Rs.3332 crore.

The massive jump in provisions at Rs.9179 crore from Rs.2828 crore (QoQ) is what has dented the bottomline.

In the ensuing Press Conference, the Bank said that it has made additional provisions for certain NPA accounts, including 100% provisions for all the NCLT accounts, as a result of which the loan loss provisions increased and that has impacted the profit after tax.