Bengaluru/Mumbai: Bank of India’s June quarter (Q1) profit rose 8.4% as the public sector bank recomputed tax provisions made a year earlier. Net profit was 95.11 crore ($13.86 million) in Q1 compared with 87.71 crore a year earlier, it said in a statement. Analysts, on average, were looking for a loss of 1,260 crore, according to estimates by Thomson Reuters I/B/E/S.

Bank of India’s income, however, fell to 10,842.96 crore, down 2.4%, from 11,106.61 crore in the year-ago period mainly due to a decline in income from “other sources" and lower interest from balances with Reserve Bank of India and other inter-bank funds. Interest income rose by 211.30 crore.

Gross bad loans as a percentage of total loans rose to 16.66% at end-June, from 16.58% in the previous quarter, and 13.05% a year ago. Non-performing assets (NPAs) held by India’s banks rose to 10.36 trillion at the end of March, the government said last week, with state-backed lenders accounting for more than 86% of the total NPAs.

A rise in bad loans also led to higher provisioning—at 2,259.66 crore during Q1 FY19 from 2,156.21 crore in the same period a year ago. Overall, the contingencies and provisions during the quarter increased to 2,564.19 crore from 2,245.28 crore year-ago first quarter.

Bank of India said its NPAs increased by 211.30 crore during the quarter as it changed the method of appropriation of recovery in bad loans. The provision coverage ratio of the bank as on 30 June 2018 is 66.67%.

On Tuesday, Bank of India shares fell 8.95%, or 9.25, to 94.15 on the BSE while the benchmark Sensex once again rose to a record high of 37,606.58 points, up 0.30%—or 112.18 points—from previous close.