Bank of India Share Price Gains Over 5% As Q4 Asset Quality Improves

Bank of India share price rose over 5% in Monday's session as the lender reported an increase in its net profit for the January-March quarter and improving asset quality. Its standalone net profit rose 82.5% on the year to Rs 2,626 crore in the fourth quarter from Rs 1,439 crore.

Bank of India's net interest income rose 2% on year-on-year basis to Rs 6,064 crore in the fourth quarter from Rs 5,936 crore. Operating profit advanced 37.3% on the year to Rs 4,885 crore in the fourth quarter from Rs 3,557 crore in the preceding quarter.

On a sequential basis, the net non-performing assets were at 0.82% compared to 0.85%. Gross non-performing asset was at 3.27% compared to 3.69% in the preceding quarter. Lender's provisions increased to Rs 1,338 crore from Rs 304 crore in the preceding quarter.

Bank of India share price jumped 5.06% to Rs 115.80 apiece, the highest level since May 6. It erased all gains to trade 0.09% higher at Rs 110.26 apiece as of 9:56 a.m., as compared to a 2.84% advance in the NSE Nifty 50 index.

In 12 months, the scrip declined 20.55%, while on a year-to-date basis, it rose 8.10%. Total traded volume on the NSE so far in the day stood at 1.76 times its 30-day average. The relative strength index was at 48.04.

Out of five analysts tracking the company, three maintain a 'buy' rating, one recommends a 'hold,' and one suggests 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 2.3%.