Bank of India (BOI) Q2 net down by 38.5% on higher provisions.
Public sector lender Bank of India has posted a drop of 38.5 per cent in net profit to Rs 301.1 crore for the quarter ended September, owing to a sharp rise in provisioning for bad loans and reversal of interest income. For the corresponding period of the previous financial year, the bank had reported a net profit of Rs 491crore.
While the lender’s total income rose to Rs 8,899 crore, compared with Rs 7,728 crore in the year-ago period, net interest income rose 15.34 per cent to Rs 2,196 crore, against Rs 1,903 crore in the corresponding period of 2011-12. Executive Director N Seshadri said interest income, which reflected earnings from core operations, had shown good growth. However, high provisions for non-performing assets (NPAs) , restructured assets and reversal of interest income booked for accounts that are now non-performing assets (NPAs) took a toll on the bank’s net profit.