Bank of India shares jumped as much as 4 per cent after the public sector lender reported a 12 per cent rise in quarterly net profit for the three months to December 2012. Analysts said earnings were in line with estimates.
Bank of India said net profit for the fiscal third quarter rose to Rs 803.5 crore against Rs 716 crore in the corresponding quarter a year ago. Lower provisioning, on a sequential basis, helped the bottom line.
Net interest income, the different between interest earned and interest paid, rose nearly 11.7 per cent to Rs 2,309 crore against Rs 2,068 crore year-on-year. Other income for the quarter stood at Rs 937 crore against Rs 852 crore y-o-y.
Net interest margin, a key measure of profitability, stood at 2.36 per cent. Loan growth rose 20 per cent while deposits were up 13.6 per cent year-on-year. Bank of India's current account savings account ratio as compared to total deposits improved to 33.84 per cent against 32.41 per cent year-on-year.
Asset quality improves sequentially:
Net non-performing assets declined to 1.97 per cent of the advances as compared to 2.04 per cent in the September quarter. Bank of India set aside Rs 916 crore towards provisions for bad loans down 41 per cent compared to the September quarter.
Gross NPAs stood at 3.08 per cent of advances against 3.42 per cent quarter-on-quarter.
Shares in the PSU lender traded 0.6 per cent higher at Rs 366.65 on the BSE as of 12.54 p.m. against a 0.5 per cent rise in the broader BSE Banking index.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
