BoI Apr-June net profit falls 16% on higher provisions, shares down 3%

State-run Bank of India (BoI) has posted a 16.4% fall in net profit for April-June on account of higher provisions, lower net interest income and a marginal increase in non-performing asset.

The net profit Rs 805.69 crore, however, beat a CNBC TV18 analyst poll estimate of Rs 701 crore.

Gross non-performing assets (NPAs) of the bank, during the quarter, rose to 3.28% of total loans, from 3.04% in the year-ago period.

Net interest income (NII), the core income of the bank, during the quarter rose to Rs 2686.49 crore from Rs 2537.02 crore in the year-ago quarter, up a subdued 6 percent.

At 12:29 PM, shares of BoI were at Rs 275.55, down 3.25% while the benchmark Sensex was down 0.7 percent.

Most of the state-run banks, reported earnings in the first quarter, have reported muted earnings on account of high provisions on bad loans, which remained high in the quarter, though the pace of increase has slowed down, compared with the previous quarters.