Bank of India post Rs 266 crore profit in Q2

State-owned Bank of India (BoI) on Friday reported a net profit of Rs 266.37 crore for the second quarter ending September 30, due to a decline in provisions for bad loans. The bank had posted a loss of Rs 1,156.25 crore in the July-September quarter last fiscal.

The total income of the bank rose to Rs 11,985.50 crore during the second quarter, from Rs 10,800.24 crore in the same period of 2018-19, according to a regulatory filing by Bank of India. Provisions towards bad loans halved to Rs 1,452.09 crore in the July-September quarter from Rs 3,343.27 crore in the year-ago quarter.

Its gross non-performing assets (NPAs) moderated to 16.31 percent of gross advances by September-end 2019, as against 16.36 percent on September 30, 2018. Net NPAs too declined to 5.77 percent at September-end from 7.64 percent in the year-ago period.

In value terms, gross NPAs of the bank remained flat at Rs 61,475.60 crore by the end of September quarter. Provision Coverage Ratio of the bank rose to 77.12 percent at the end of the second quarter.

During the quarter ended September 30, 2019, Bank has redeemed Tier II Bonds aggregating to Rs 1,000 crore by exercising the call option. Shares of Bank of India were trading 2.10 percent higher at 72.80 on the BSE.