Bank of India gains after robust Q1 numbers

Bank of India rose 1.59% to Rs 47.85 after the bank's net profit jumped 247.7% to Rs 843.60 crore in Q1 FY21 from Rs 242.62 crore in Q1 FY20.

Total income during the quarter rose 3.6% on a year-on-year (YoY) basis to Rs 11,941.52 crore in the June quarter.

Profit before tax stood at Rs 1,332.45 crore in Q1 June 2020, steeply higher than Rs 359.37 crore in Q1 June 2019.

Tax expense jumped to Rs 488.85 crore in the first quarter from Rs 116.75 crore in the same period last year.

The bank's provisions and contingencies fell 20.9% to Rs 1,512.07 crore in Q1 FY21 from Rs 1,911.98 crore in Q1FY20. Of this, the provision for non-performing assets declined by 59.1% YoY to Rs 766.62 crore in the June quarter. Provision Coverage Ratio as on 30 June 2020 was at 84.87% as against 77.18% as on 30 June 2019.

During Q1 FY21, Bank of India made an additional provision of Rs 620.30 crore on account of Covid related accounts. The provision of Rs 1034.78 crore is held by the bank on Covid related accounts as on 30 June 2020. This additional provision made by the bank is more than requirement as per the RBl guideline dated 17 April 2020.

Gross non-performing assets (NPAs) stood at Rs 57,787.78 crore as on 30 June 2020 as against Rs 61,549.93 crore as on 31 March 2020 and Rs 62,068.40 crore as on 30 June 2019.

The ratio of gross NPAs to gross advances stood at 13.91% as on 30 June 2020 as against 14.78% as on 31 March 2020 and 16.50% as on 30 June 2019.

The ratio of net NPAs to net advances stood at 3.58% as on 30 June 2020 as against 3.88% as on 31 March 2020 and 5.79% as on 30 June 2019.

Total deposits increased by 16.2% to Rs 5,95,235.08 crore in Q1 FY21 from Rs 5,12,237.02 crore in Q1 FY20. Advances at the end of the June 2020 quarter rose by 11.3% to Rs 3,70,614.56 crore as compared to Rs 3,32,966.65 crore at the end of June 2019 quarter.

Bank of India provides a wide range of banking products and financial services to corporate and retail customers. The Government of India holds 89.28% stake in Bank of India as on 30 June 2020.

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