Mumbai, April 19 (Reuters) – Bank of India reported net profit in the January-March quarter rose 63%, a payment that contributed to the loan losses.
The Mumbai-based private lender’s independent net profit began from Rs 4.52 crore in the same period a year ago, rising to Rs 7.38 crore (US$86.39 million) in the fourth quarter of the fiscal year.
This exceeded analysts’ average forecast of Rs 6.4 crore, according to LSEG data.
Yes, the regulations and contingencies of banks, or funds shelved for potential non-performing loans, fell 32.5% in the year to Rs 318 crore.
Its total non-performing asset ratio is a key quality of asset quality, at 1.60% at the end of March and remains unchanged from the end of the first three months.
Net interest income, the difference between interest earned on loans and paid to depositors rose 5.7% to Rs 2,276 crore.
Its other income, including fees, commissions and interest, received traditional interest-based activities, which increased by 11% to Rs 15.67 crore.
Its loans grew 8.1% year-on-year, while deposits rose 6.8%.
Net interest margin is a key profit margin, up 2.50%, up from 2.40% in the same period last year and the previous three months.
Analysts expect the Reserve Bank of India to cut interest rates by 50 benchmarks since February to be under pressure in the coming quarters. This is because loan interest rates are delivered faster than deposits.
Prior to the results, the bank’s shares closed up 1.2% on Thursday. ($1 = INR 85.4290) (Reported by Siddhi Nayak in Mumbai; Edited by Raju Gopalakrishnan)
