Bank of India dips over 5% as Q3 profit disappoint

The stock dipped nearly 6% at Rs 228 after reporting a sharp 70% yoy decline in its net profit at Rs 173 crore in December quarter.

Shares of Bank of India has dipped nearly 6% to Rs 228 after reporting a sharp 70% year on year (yoy) decline in its net profit at Rs 173 crore for the third quarter ended December 31, 2014 (Q3) due to poor performance from retail banking operations and higher staff cost.

The state-owned bank had profit of Rs 586 crore in the same quarter last year.

Net interest income (interest earned minus interest expanded) grew marginally by 2.24% at Rs 2,780 crore in December quarter against Rs 2,719 crore in the corresponding quarter of previous fiscal. Employee cost increased by 30% at Rs 1,288 crore on yoy basis.

The bank’s retail banking operations has reported profit before tax of Rs 27.68 crore during the quarter under review, compared to Rs 786 crore in the corresponding quarter of previous fiscal.

Bank of India’s ratio of gross non-performing assets (NPAs) to net advances stood at 4.07% as on December 31, 2014, compared with 3.54% as on September 30, 2014 and 2.81% as on December 31, 2013.

Net NPAs rose to 2.50% in December quarter from 2.32% in preceding quarter and 1.75% in a year ago quarter.

The stock opened at Rs 243 and touched a low of Rs 227 on NSE. A combined 10.26 million shares changed hands on the counter till 1250 hours on NSE and BSE.