Bank of India Q2 net dips 38.5% on bad loans; stock down 6%

Public sector lender Bank of India has reported poor numbers due to sharp rise in bad loans in the July-September quarter. Net profit fell by 38.5 percent year-on-year and 66 percent quarter-on-quarters to Rs 302 crore in the quarter.

Net interest income rose lower than expected 15 percent to Rs 2,196 crore from Rs 1,904 crore during the same period.

Analysts on an average had estimated a net profit of Rs 783 crore and net interest income of Rs 2,227 crore for the quarter.

The bank's asset quality worsened considerably in the quarter gone by. Gross non-performing assets (NPA) increased 86 basis points QoQ to 3.42 percent and net NPAs went up by 35 basis points QoQ to 2.04 percent in the second quarter of financial year 2012-13.

Gross NPAs rose nearly 32 percent to Rs 8,899 crore while net NPAs spiked 18.5 percent to Rs 5,228 crore during the same period.

Provisions against bad loans grew three times to Rs 1,552 crore in the quarter ended September 2012 from Rs 472 crore in previous quarter. Provision coverage ratio was 60.96 percent as on September 30.

Capital adequacy ratio was 11.1 percent in the second quarter as against 11.42 percent in June quarter of current financial year.

The share plunged as much as 6 percent to touch an intraday low of Rs 269.50 on the Bombay Stock Exchange.

Source: www.moneycontrol.com

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