Bank of India (BoI) on Tuesday reported an 84% drop in its net profit to R129.72 crore for Q1FY16 on the back of higher provisioning.
Bank of India (BoI) on Tuesday reported an 84% drop in its net profit to R129.72 crore for Q1FY16 on the back of higher provisioning. The bank had reported a loss of R56.14 crore in the previous quarter.
Net interest income (NII) rose 8.42% to R2,912.68 crore on a year-on-year basis. On a sequential basis, the figure rose 2.33%. Net interest margin (NIM) rose to 2.52% in the first quarter compared to 2.24% in the previous quarter.
Other income fell 18% to R840.57 crore compared to R1,024.47 crore a year ago while total income rose 3% to R11,659.16 crore in the first quarter of this fiscal.
Operating profit dipped 17.28% to R1,704.21crore in the first quarter. Asset quality worsened with gross non-performing assets as a percentage of gross advances rising 3.52% on a y-o-y basis to 6.8%. On a sequential basis also, GNPAs rose 1.41%.
Net NPAs rose 1.97% to 4.11% in the first quarter where as on a sequential basis, it rose 0.75%. Provisions (other than tax) and contingencies rose 69% to R1,514.73 crore on a y-o-y basis. BoI saw fresh slippages of R6,535 crore in the first quarter compared to R6,547 crore in the previous quarter, according to the bank’s release.
Recoveries stood at R468 crore, upgradations at R1,193 crore while write-offs were at R178 crore in the first quarter.
“The recoveries and upgradations have not taken place in the way it was envisaged,” said BP Sharma, MD and CEO at Bank of India. The stock fell 6.4% in intraday trade before closing down 5.68% at R154.50 on the BSE.