Shares of Bank of India on Monday plunged 11.32% to Rs 158.30 on the BSE after the bank reported a poor set of numbers for the fourth-quarter. Bank of India narrowed its net loss for the quarter under review to Rs 1,045 crore, driven by interest income and lower provisions. The net loss a year ago stood at Rs 3,587 crore.
The stock lost approximately Rs 2,114 crore in market capitalisation. The intra-day low for the stock was Rs 155.95. The BSE Bankex ended 0.61% lower at 25,699.79 points and the Nifty PSU bank index ended 4.17% lower at 3,611.85 points.
“Our approach will be rebalancing of assets in the next two years. We will be moving towards retail and loans below Rs 5 crore. That will be a different profit scenario for the bank, because simply growing will not be very helpful. And within the top line level also, we are trying to maximise the asset composition and pricing so that our profitability increases,” said managing director and CEO Dinabandhu Mohapatra said.
BoI sold its stake in credit information company CIBIL for Rs 188.13 crore. Other income was boosted by an 18% stake sale by the bank in its joint venture Star Union Dai-ichi Life InsuranceCompany, resulting in a gain of Rs 495 crore.