InvestorQ : How did Bank of India report such fantastic profits in Jun-20 quarter?
Lavanya Subramanian made post

How did Bank of India report such fantastic profits in Jun-20 quarter?

Answer
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ishika Banerjee answered.
1 month ago


Bank of India reported a 3-fold jump in net profits at Rs.8434 crore for the Jun-20 quarter as the pressure of bad loans appeared to abate. During the quarter, the total income also increased by about 4% to Rs.11,941 crore. Gross NPAs did fall significantly from 16.50% to 13.91%, but still remains at an unsustainably high level to become an investment candidate. Net NPAs also came down 221 bps to 3.58%.

This healthy provision coverage resulted in the provisioning for bad loans falling by more than Rs.1100 crore to Rs.766.62 crore, which was the major reason for the sharp spurt in net profits during the quarter. Bank of India has been among the PSU banks that has provided thousands of crore to take care of the NPA pandemic.