Bank of India Q1 Profit Surges Nearly Three-Fold To Rs 1,551 Crore

State-owned Bank of India on Friday reported a nearly three-fold jump in net profit to Rs 1,551 crore in the June quarter due to a decline in bad loans.

The Mumbai-based lender had posted a net profit of Rs 561 crore in the year-ago period.

The total income in the first quarter of the current fiscal rose to Rs 15,821 crore as against Rs 11,124 crore in the same period a year ago, Bank of India said in a regulatory filing.

The lender's interest income also increased to Rs 14,359 crore from Rs 9,973 crore in the same quarter a year ago.

On the asset quality side, the bank witnessed an improvement with the gross Non-Performing Assets easing to 6.67% of the gross advances by June 2023 from 9.30% a year ago.

The net NPA too declined to 1.65% against 2.21% in the same period of the previous year.

As a result, provisions for bad loans came down to Rs 777 crore compared to Rs 1,304 crore in the same quarter a year ago.

Provision Coverage Ratio of the bank increased to 89.52% as of June 2023 against 87.96 per cent at the end of the first quarter of the previous financial year.

The capital adequacy ratio of the bank declined marginally to 15.60% at the end of June compared to 15.61% a year ago.