Bank of India falls 8% on weak Q2 results
Business

Bank of India falls 8% on weak Q2 results

2018-11-13 05:45:24

The stock slipped 8% to Rs 80.50 on Tuesday, extending its Monday's 5% decline on the BSE, after the state-owned bank reported a net loss of Rs 11.56 billion in Q2FY19. Shares of Bank of India have slipped 8% to Rs 80.50 per share on Tuesday, extending their 5% decline on the BSE on Monda, after the state-owned bank reported a net loss of Rs 11.56 billion in the second quarter of current fiscal 2018-19 (Q2FY19), due to higher provisioning for bad loans.

The bank had posted a net profit of Rs 1.79 billion in the corresponding July-September period of the last fiscal (Q2FY18). It had a net profit of Rs 951 million in the April-June quarter of the 2018-19 fiscal (Q1FY19).

For the first half (April-September) of FY19, Bank of India posted a net loss of Rs 10.61 billion against a net profit of Rs 2.67 billion in the same period of FY18.

Net interest income (NII) of the bank during the quarter under review remain flat at Rs 29.27 billion in Q2FY19, as compared to Rs 29.08 billion in Q2FY18. Provisions towards bad loans rose 52% to Rs 28.28 billion from Rs 18.67 billion in the year-ago quarter.

The assets quality of the bank was worse on a year-on-year basis with gross non-performing assets (NPAs) touched 16.36% of gross advances in Q2FY19 against 12.62% in Q2FY18. Net NPAs jumped to 7.64% from 6.47% in the year-ago period. However, gross and net NPAs were down to 16.66% and 8.45%, respectively, compared to Q1FY19.

At 10:02 am; Bank of India was trading 7.5% lower at Rs 80.75 on the BSE on back of heavy volumes. A combined 14.76 million equity shares changed hands on the BSE and NSE so far.

The stock trading close to its 52-week low of Rs 73.30 touched on October 25, 2018, on the BSE in intra-day trade. In past one year, it tanked 59% as compared to a 5% rise in the S&P BSE Sensex. Source