Bank of India Q3 Net Profits Slump to Rs 173 Crores; Stock Tanks

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, February 12, 2015, 12:17 [IST]

Yet another PSU bank reported a poor set of results with Bank of India seeing profits slump to Rs 173 crores and asset quality deteriorate for the quarter ending Dec 31, 2014. Net profits for the quarter ending Sept 30, 2014 were hugely better at Rs 786 crores.

Asset quality at the bank also worsened with the gross NPA surging past the 4 per cent mark, at 4.07 per cent, as compared to 3.54 per cent in the previous quarter. Net non performing asset also deteriorated with the figure placed at 2.52% as against 2.32 in the previous quarter.

Meanwhile, shares at the bank slumped a huge 5 per cent and were last trading at Rs 229.30. Most of the PSU banks have reported a poor set of results as economic growth has yet not gathered momentum. Most of them are saddled with poor asset quality that refuses to go away. Many bankers say that the sticky asset quality at the PSU banks is likely to stay for many more quarters.

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