Bank Of India Posts Disappointing Numbers For Q1FY15

Mumbai based public sector lender, Bank of India (BOI) posted weak set of numbers in its first quarter of FY15. Net profit of the bank dropped by 16.4% on yearly basis and stood at Rs 805.69 crore for Q1FY15. Fall in the net profit was due to subdued growth in their net interest income, fall in the other income and rise in provisions and contingencies. 

Net interest income (NII) of the bank has increased by 5.9% on yearly basis to Rs 2686.5 crore for April-June quarter. The street was expecting the bank to post NII growth of 21%. Other income of the bank dropped by 13.2% on yearly basis and stood at Rs 1024.47 crore for quarter ending June 2014. Unlike other public sector banks, which saw their provisions and contingencies declining on yearly basis, BOI saw its provisions and contingencies increasing by 28.6% to Rs 893 crore for Q1FY15. 

Overall asset quality of the bank deteriorated on both sequential as well as on yearly basis. In absolute terms, gross non-performing assets (NPA) and net NPA of the bank increased by 5.6% and 8.4% sequentially. Even as proportion to advances, gross NPA and net NPA declined by 13 basis points and 14 basis points to stand at 3.28% and 2.14% respectively.  

Shares of the bank dropped by nearly one per cent in today's trade and closed at Rs 280.95, which is 0.6x its book value.