Bank of India posts net of Rs 88 crore

State-owned Bank of India has turned around its financial performance and posted a net profit of Rs 87.71 crore for the quarter ended June 30, 2017, compared to a loss of Rs 741 crore in the corresponding period (Q1FY17).

The bank had posted a loss of Rs 1,045.52 crore in the sequential quarter (Q4FY17). Asset quality for the bank during the quarter witnessed a marginal improvement. Gross non-performing assets (NPAs) ratio declined sequentially, and was 13.05% as on June 30, 2017, against 13.22% as on March 31, 2017.

Net NPA ratio for the bank declined to 6.70% as on June 30, 2017, against 6.90% as on March 31, 2017. Total global restructured standard assets of the bank were Rs 11,679 crore as on June 30, 2017.

The total stressed assets (gross NPA + restructured standard assets) as percentage of global gross advances declined from 16.47% in June 2016, to 16.03% in June 2017.

Net interest income for the bank during the quarter declined 26.98% to Rs 2,533 crore in June 2017 quarter compared to Rs 2,775 crore in the same quarter previous fiscal.

Provision coverage ratio improved from 53.06% in June 2016, to 63.54% in June 2017, which was at 61.47% in March 2017.Gross advances grew 0.90% to Rs 3,91,062 crore.

The bank is targeting a credit and deposit growth of 8-10% in the fiscal 2017-18. In the current financial year, the bank is planning to seek Rs 2,500 crore capital from the government, BoI managing director and CEO Dinabandhu Mohapatra said.

The bank’s scrip ended at Rs 158.45, up 3.77% on the BSE, whose benchmark index Sensex dropped 0.68% to settle at 31,797.84.