Bank of India shares gain over 3 pc as Q1 net profit rises over three-fold

Shares of Bank of India (BoI) on Monday gained over 3 per cent after the company reported over three-fold rise in net profit for the quarter ended June 30.

Shares of Bank of India (BoI) on Monday gained over 3 per cent after the company reported over three-fold rise in net profit for the quarter ended June 30. The stock rose 2.02 per cent to close at Rs 48.05 on the BSE. During the day, it jumped 6.47 per cent to Rs 50.15.

On the NSE, it gained 3.18 per cent to close at Rs 48.55. In traded volume terms, 10.58 lakh shares were traded on the BSE and over one crore units on the NSE during the day. State-owned Bank of India on Monday reported over three-fold rise in net profit to Rs 843.60 crore for the quarter ended June 30, as pressure of bad loans eased.

The bank had registered a net profit of Rs 242.60 crore in the April-June period of 2019-20. The total income during the period under review increased to Rs 11,941.52 crore, from Rs 11,526.95 crore in the year-ago period, BoI said in a regulatory filing.

On the assets front, the bank witnessed improvement with gross non-performing assets (NPAs) declining to 13.91 per cent of the gross advances as on June 30, 2020 as against 16.50 per cent in the same period a year ago. Similarly, net NPAs or bad loans too declined to 3.58 per cent from 5.79 per cent in the corresponding period last year.

As a result, the provisioning for bad loans declined to Rs 766.62 crore during April-June of this fiscal from Rs 1,873.28 crore in the same period a year ago..