State-owned Bank of India reported a strong growth in net profit during April-June quarter, boosted by a jump in other income, but concerns over deteriorating asset quality pulled down shares of the bank.
The bank’s net profit was Rs 887 crore, an impressive 71 percent grow over a year ago. It also reported an 11 percent on-year increase in net interest income to Rs 2,044 crore.
The bank’s gross non-performing assets (NPA) and net NPA, however, increased during the quarter.
Gross NPA stood at 2.56 percent as on June 30, against 2.34 percent on March 31 and net NPA at 1.69 percent against 1.47 percent.
The bank’s provision coverage ration was 60.86 percent and capital adequacy ratio at 11.42 percent.
The bank’s other income rose to Rs 840 crore vs Rs 660 crore a year ago.
The bank’s treasury revenue stood at Rs 2350 crore vs Rs 2114 crore a year ago.
Shares of Bank of India were down 3.5 percent at Rs 296 on the Bombay Stock Exchange.