Bank of India slides on disclosing divergence in NPA provisioning

Bank of India fell 0.49% to Rs 50.90 after the bank said its total provisions under divergence stood at Rs 930 crore.

While informing about the divergence in the asset classification and provisioning for NPAs, the state-run lender disclosed that total provisions under divergence is Rs 930 crore, which include divergence in provision for NPA of Rs 394 crore, provision for investments of Rs 23 crore and shortfall in standard asset provisioning of Rs 513 crore.

It further said that out of Rs 930 crore provisions under divergence, the bank has already made provision of Rs 572 crore during the current financial year. Hence, the remaining impact is Rs 358 crore, the bank added.

Bank of India provides a wide range of banking products and financial services to corporate and retail customers. The Government of India holds 89.10% stake in BOI as on 30 September 2020.

The bank's net profit jumped 97.4% to Rs 525.78 crore on a 3.5% increase in total income to Rs 12,408.66 crore in Q2 September 2020 over Q2 September 2019.

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