Public sector lender Bank of India on January 31 reported profit at Rs 105.5 crore for the December quarter against a loss of Rs 4,737.56 crore in the same period last year.
Profitability was supported by lower provisions, higher other income and operating income.
Net interest income during the quarter grew by 23.6 percent to Rs 4,118 crore YoY, with a muted year-on-year loan growth of 1.7 percent.
Gross non-performing assets (NPAs) as a percentage of gross advances declined 1bp sequentially to 16.30 percent, but net NPA increased 10bps QoQ to 5.97 percent in the quarter.
Slippages rose sharply to Rs 6,716 crore at the end of the December quarter, against Rs 3,166 crore in the previous quarter.
Bank of India said it made additional provision of Rs 501.4 crore on uncertainty in recovery of 49 NPA accounts.
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Provisions and contingencies fell 55.4 percent year-on-year to Rs 4,015 crore in Q3FY20, but nearly doubled compared to Rs 2,052.3 crore in previous quarter. Provision coverage ratio during the quarter improved slightly to 77.15 percent from 77.12 percent QoQ.
Other income (non-interest income) shot up 63.5 percent YoY to Rs 2,503 crore and operating profit grew by 82 percent YoY to Rs 4,134.88 crore in Q3FY20.
The bank in its BSE filing said FY19 gross NPA and net NPA divergence stood at Rs 1,117 crore each, with provision divergence at Rs 1,446 crore.
Adjusted loss for FY19 after divergence stood at Rs 6,993 crore and except one account, the impact of divergence factored in April-December period of FY20 earnings, it added.The stock was quoting at Rs 67.20, up Rs 1.15, or 1.74 percent, on the BSE at 1224 hours.