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Bank of India trades 3% up on 3 fold rise in Q1 net
August 01, 2023
Shares of Bank of India jumped 3 percent in early trade on July 31 after the lender reported a healthy set of earnings for the April-June quarter on the back of an improvement in asset quality.
Bank of India recorded an over threefold increase in its net profit for the period under review to ₹1,551 crore as against ₹561 crore a year ago.
Its net interest income also surged 45 percent on-year to ₹5,915 crore, along with a 51 basis points increase in net interest margin to 3.37 percent from 2.87 percent last year. One basis point is one-hundredth of a percent.
The state-run lender’s asset quality improved in the quarter with its gross non-performing assets (NPAs) down to 6.67 percent from 7.31 percent in the previous quarter. Its net NPA too came down to 1.65 percent from 1.66 percent on-quarter.
At 9.19am, shares of Bank of India were trading at ₹85.60 on the National Stock Exchange, up 1.9 percent from the previous close.
Brokerages seem to remain positive on the PSU bank, buoyed by its healthy earnings show.
Foreign brokerage firm Morgan Stanley commended the lender’s strong asset quality and balance sheet. It retained its ‘overweight’ call on Bank of India, with a price target of ₹120. It also highlighted that NIIs as well as core revenues of the lender came in-line with its estimate even after adjustment of higher interest income on account of an income tax (IT) refund.
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