Bank of India net profit jumps 91%

Bank of India net profit jumps 91%

Mumbai: Public sector lender Bank of India reported a 91% rise in its net profit, on a low base of last year, owing to lower provisioning for bad debts.

Profit for the quarter rose to Rs617 crore from Rs323 crore a year ago, but provisions on account of bad debts fell to Rs286 crore from Rs470 crore a year ago. Overall, provisions including that accounted for depreciation in its investment portfolio fell to Rs527.36 crore from Rs602.13 crore a year ago.

The bank’s net interest margin, a key parameter of profitability, rose 0.24% to 2.81% in the quarter. The share of low cost current and savings account of the bank improved to 33.48% from 32.12% a year ago.

Share of the bank fell 2.78% to Rs536.55 on the Bombay Stock Exchange. Sensex, the sensitivity index of the exchange fell 0.47% to close at 20,165 points on Friday.