Timber wood Synopsis
Shares of Bank of India fell almost 9% on Monday on the NSE as investors reacted to the slippage in net NPA during the January to March quarter. Although the bank saw a 5.32% quarter-on-quarter jump in its net NPA, its NNPA was down 18% YoY. Bank of India reported a 115% jump in consolidated profit after tax for the March quarter, while also planning for a capital raise of INR4,500 crore in FY24. Gross Non-Performing Assets and core net interest income also posted positive results.ETMarkets.comState-owned Bank of India (BoI) shares plunged nearly 9% on Monday on the NSE, tracking weakness in the overall PSU bank stocks. It was the worst-performing stock in the Nifty PSU Bank index.
The stock was trading at Rs 81.30 on the NSE around 1:15 pm and was down by Rs 4.90 or 5.68% from last close.
BoI shares fell on account of slippages in net NPA (non-performing assets). The state-run bank reported a 5.32% quarter-on-quarter jump in its net NPA during the January to March quarter at Rs 8,053.61 crore versus Rs 7,646.19 crore in Q3FY23. However, the NNPA was down 18% year-on-year from 9,851.93 crore.
The percentage of Net Non-Performing Assets in Q4FY23 stood at 1.66% versus 1.61% in Q3FY23 and 2.34% in Q4FY22, BoI’s exchange filing said.
Meanwhile, the bank reduced its Gross Non-Performing Assets on a Q0Q and YoY basis. For the quarter ended March 31, 2023, the GNPA stood at Rs 37,685.56 crore versus 38,884.61 in Q3FY23 and Rs 45,605.40 crore in Q4FY22. The percentage of GNPA for the reporting quarter stood at 7.31% versus 7.66% in Q3FY23 and 9.98% in Q4FY22.
On Saturday, BoI reported a 115% jump in its consolidated profit after tax for the March quarter to Rs 1,388.19 crore, helped by a jump in other income, PTI reported. The city-based lender’s profit for FY23 increased to Rs 3,882 crore, up from Rs 3,406 crore in FY22, the report said.
The bank is planning for a capital raise of Rs 4,500 crore in equity capital in FY24, which will help bring down the government’s stake in the lender to the Sebi-mandated 75%.
The bank’s core net interest income was up over 37% to Rs 5,493 crore on a 13% growth in advances, the PTI report said. It posted a widening of net interest margin to 3.15% from 2.56% in the year-ago period.
Its non-interest income almost doubled to Rs 3,099 crore for the reporting quarter from Rs 1,587 crore a year ago. The same for the preceding December quarter was Rs 1,432 crore, the report said further.
Nifty PSU Bank index was trading at 4,094.50, down by 59.10 points or 1.42% around this time. In the 12-stock index, 10 were down around this time. The other top losers were Indian Bank and Punjab & Sind Bank.
The gainers were State Bank of India (0.90%) and Central Bank of India (0.18%).
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