Bank of India net down 39 in Q2,on higher provisioning

Bank of India reported a net profit of Rs 302 crore,during the three months ended September 2012,down 38.5 year on year,due to higher provisioning for non-performing assets.

Bank of India BoI reported a net profit of Rs 302 crore,during the three months ended September 2012,down 38.5 year on year,due to higher provisioning for non-performing assets. Provisions for non-performing assets NPAs during the quarter bloated to Rs 1,477 crore,up 79 from a year ago.

Operating profit for the bank however,grew by almost 20 year on year,to Rs 1,854 crore during the three month period.

BoI8217;s asset quality deteriorated,with gross NPAs rising 36 annually to Rs 8,898.60 crore. Gross NPAs as a ratio of total assets stood at 3.42,as against 3 during the same quarter last year.

Though we have cleared whatever could have been a problem,you would be naive to assume that there will be no further non-performing loans. Probably the number could go up slightly from here,but by the end of the year,we are expecting to deliver an NPA number very close to the current one, N Seshadri,executive director of the bank,while presenting the results,said.

Net NPAs rose to Rs 5,228 crore,up 23 from the same quarter last year. Net NPAs as a ratio of total assets rose to 2.04 during the quarter,from 1.98 in the previous fiscal.

Outstanding restructured loans as on September 30,stood at Rs 15,786 crore,rising 3.5 sequentially and almost double the Rs 7,057 crore reported during the same period last year. During the second quarter,the bank restructured loans worth nearly Rs 800 crore,out of which almost Rs 470 crore was from an account belonging to the hospitality industry,Seshadri said.

The lender was able to maintain its net interest margin NIM at 2.42,as compared with 2.43 in the corresponding quarter last year and was up 15 basis points,sequentially.

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The public sector lender8217;s net interest income for the quarter stood at Rs 2,196 crore,up 15 as compared to the same quarter last year. Total income too,grew 15 annually to Rs 8,899 crore,during the second quarter of the current fiscal.

Global advances during the quarter grew to Rs 2,60,379 crore,up 20 year on year. While global deposits rose 11.2 annually to Rs 2,99,074 crore,the bank said. Current account savings account CASA ratio for the three month period stood at 32.77,up from 32 in the previous quarter and 31.64 in the corresponding quarter last year.