Bank of India posts Rs 266-cr Q2 profit as provisions fall

Mumbai: State-run lender Bank of India reported a net profit of Rs 266.3 crore for the quarter ended September 30, on the back of fall in provisions. It had reported a loss of Rs 1156 crore during the same period last year.

The net-interest income (NII), or the core income from operations, rose to Rs 3,860 crore versus Rs 2,927 crore during the same period last year.

The lender also reported a nearly 200% jump in its special mention accounts, where overdue is between 31 and 90 days. This was largely due to the addition of two government-owned entities and a large mortgage-lender which is under stress.


Bank of India executive director N. Damodaran said that two government-owned entities with total dues of Rs 3000 crore was included in the overdue accounts because of technical reasons and expects these two accounts to exit the overdue loan portfolio because the payments are likely to be regularised.

Bank of India’s special mention book also includes Rs 3800 crore exposure to government-owned aviation company, which has been restructured.

Its gross non-performing assets (NPAs) moderated to 16.31% by September-end 2019, as against 16.36% during the corresponding period last year.