Mumbai: State-owned Bank of India (BOI) on Thursday reported a net profit of Rs126.84 crore for the quarter ended September.
The bank had reported a net loss of Rs1,126.24 crore in the same quarter a year ago on account of higher provisions for bad loans.
“During the quarter, the bank has earned profit before tax amounting to Rs495 crore (Rs323.69 crore net of taxes) from sale of 18% stake in Star Union Dai-ichi Life Insurance Company Ltd,” it said in a statement.
Interest and non-interest income combined rose to Rs11,469.11 crore for the quarter from Rs11,317.97 crore a year ago, the bank said.
A decrease in reserves towards bad loans in the form of provisions and contingencies to Rs2,296.22 crore from Rs3,237.39 crore a year ago helped it swing to a profit.
However, asset quality remained an issue as gross non-performing assets (NPAs) rose to 13.45% of gross advances at the end of September, from 7.55% a year earlier. Net NPAs made up 7.56% of net advances, up from 4.31% a year ago.
In absolute terms, gross NPAs stood at Rs52,261.95 crore as of end-September, from Rs29,293.67 crore a year ago. Net NPAs rose to Rs27,467.05 crore from Rs16,466.48 crore. The provision coverage ratio of the bank at the end of the second quarter stood at 55.23%, from 55.08% in the year-ago period.