State-owned Bank of India (BOI) reported its Q1FY21 results on Monday (3rd August 2020). The standalone net profit has risen exponentially within a space of one year. Net profits were amasses to be Rs 242 crore in the same quarter last year as compared to Rs 843 crore in the quarter under review.
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Total income for the bank has also risen by 3% at Rs 11,941 crore. Another good news for the bank is the falling gross non-performing assets. Last year, gross NPA accounted for almost 16.50%. This has fallen to 13.91% in the quarter under review. Net NPA has also seen a fall by almost 4%.
“The COVID-19 continues to spread across many countries and in India and the same has resulted in significant volatility and decline in the global and local economic activities. The situation continues to be uncertain and the Bank is evaluating the situation on an ongoing basis. The major challenge for the Bank would arise from volatility in cash flows. Despite these events and conditions, there would not be any significant impact on Bank’s results in future and on the going concern assumption” , the company said in its financial report.
In the same quarter last year, Rs 1,873 crore worth of provisioning for bad loans were made. This has reduced by almost half to Rs 766 crore on account of the decreasing percentage of NPAs. This lower provision has boosted the bottom line (net profit) for the public sector bank.
On account of positive results this quarter, the share price of Bank of India (BOI) went up by 2.34% to close at Rs 48.15 on NSE.