Bank Of India Surges 14% On Strong Q2 Result

State-owned Bank of India has posted a net profit of Rs 126.84 crore for the second quarter ended September 30^th 2016.  The bank had declared a net loss of Rs 1,126.24 crore in July-September of 2015-16 on due to higher provision for bad loans as per RBI's asset quality review guidelines. It had sold 18 per cent in its joint venture Star Union Dai-ichi Life Insurance to the foreign partner.

On the back of strong Q2 result, Bank of India share price traded with the rise of 14% intraday at NSE. 

Bank of India stated that during the quarter, the bank has earned profit before tax (PBT) amounting to Rs 495 crore from sale of 18 per cent stake in Star Union Dai-ichi Life Insurance Company Ltd. Profit stood at Rs 323.69 crore net of taxes.

Total income reported at Rs 11,469.11 crore for the quarter ended September 2016 whereas it was Rs 11,317.97 crore for the same quarter of the previous financial year. A decline in reserves towards bad loans in the form of provisions and contingencies at Rs 2,296.22 crore for the quarter under review against Rs 3,237.39 crore a year ago helped.

Meanwhile, Bank of India share price was last traded at Rs. 124.80, up by 13.71%.

However, asset quality remained a concern as gross non-performing assets (NPAs) went up to 13.45 per cent of gross advances at the end of September 2016, from 7.55 per cent a year previously. Net NPAs or bad loans were 7.56 per cent of net advances for the Q2FY17, up from 4.31 per cent a year ago.

In absolute terms, gross NPAs stood at Rs 52,261.95 crore as on September 2016, from the prior Rs 29,293.67 crore. Net NPAs were at Rs 27,467.05 crore as compared to the previous Rs 16,466.48 crore. The provision coverage ratio of the bank at the end of the Q2 stood at 55.23 per cent, from 55.08 per cent in the year-ago period.

Bank of India is the top 500 stock recommendation for the quarter by Dynamic Levels. For the details on the stock, visit Bank of India share price history page of Dynamic Levels website.