Bank of India on Thursday reported a net profit of R126.84 crore for the quarter ended September, against a net loss of R1,126.24 crore in the same quarter last year, on the back of a 158.35% year-on-year (y-o-y) jump in non-interest income to R2,010.63 crore.
The bank reported profit after a gap of four quarters.During the quarter, the bank sold an 18% stake in Star Union Dai-ichi Life Insurance Company to its Japanese partner in the insurance joint venture for R540 crore. The sale resulted in capital gains of R495 crore.
MD & CEO Melwyn Rego said, “Sale of other non-core assets are being examined to augment capital.”
Treasury income, which grew 49.53% y-o-y to R3,517 crore, also helped improve the bottom line. The net interest income fell nearly 10% y-o-y to Rs 2,720 crore. Domestic net interest margin (NIM) improved to 2.62% from 2.54% at the end of June. Foreign NIM dropped to 1.1% from 1.4% in the previous quarter, primarily because of redemption of advances made against FCNR deposits raised offshore.
Rego said the bank was confident of meeting its full-year target of Rs 17,500 crore for recoveries and upgrade. Of this, Rs 10,000 crore was recovered in H1.