Bank of India Q3

A sharp increase in provisions for bad loans hurt Bank of India’s net profit, which dropped 27% in the third quarter ending December 2013 at Rs. 586 Cr. Provisions or amount set aside for stressed assets, jumped 53% to Rs. 1,404 Cr from Rs. 916 Cr in the corresponding quarter of the last fiscal year. Further, provisions rose as restructured assets worth Rs. 298 Cr had to be declared as non-performing according to the RBI’s classification norm. “Without these provisions, our profit would have been boosted by Rs. 110 Cr,” said VR Iyer, CMD of the bank. Asset quality improved marginally with gross non-performing assets ratio as a percentage of total advances at 2.81% as on December, 2013 from 3.08% as on December, 2012. Net interest income rose 18% and non-interest income increased 17% year-over-year. Total advances grew 25% driven by robust growth in agriculture, corporate and retail portfolio.