Bank of India reports Q2 profit of Rs 266 crore but asset quality remains poor

Mumbai (Maharashtra) [India], Nov 2 (ANI): Government-owned Bank of India has reported a net profit of Rs 266 crore in the July to September quarter of current fiscal compared to a net loss of Rs 1,156 crore in the corresponding period of last year.
While the net interest income rose by 31.9 per cent from Rs 2,927 crore to Rs 3,860 crore, the operating profit jumped 49.3 per cent from Rs 1,647 crore in Q2 FY19 to Rs 2,460 crore in Q2 FY20, it said in a statement on Saturday.
The non-interest income increased by 28.8 per cent from Rs 1,030 crore to Rs 1,327 crore.
Though gross non-performing assets (NPAs) came down from Rs 62,068 crore in June to Rs 61,476 crore in September, the ratio remained at 16.3 per cent compared to 16.5 per cent in June.
The provision coverage ratio was 77.12 per cent in September this year compared to 69.12 per cent in the same month of last year. Priority sector advances stood at Rs 1.24 lakh crore which constituted 40.46 per cent of the adjusted net bank credit.
Domestic business stood at Rs 7.58 lakh crore as on September 30 against Rs 7.20 lakh crore in the same month of last year, signifying a year-on-year increase of 5.27 per cent.
However, as a result of rationalisation measure, overseas business witnessed a de-growth of 18.6 per cent and stood at Rs 1.36 lakh crore.
CASA (current account savings account) deposits grew by 7.75 per cent and the share in domestic deposits improved from 41.44 per cent in September 2018 to 42.35 per cent in September 2019.
The domestic advances increased by 5 per cent from Rs 3.06 lakh crore in Q2 FY19 to Rs 3.21 lakh crore in Q2 FY20. On the other hand, gross advances (global) stood at Rs 376,993 crore as against Rs 376,178 crore as on September 30 last year.
(ANI)