Bank of India Q2 net rises 80% on robust credit growth

Bank of India reported an 80 per cent growth in second quarter net profit, beating analysts’ predictions.

Mr T.S. Narayanasami, Chairman and Managing Director, attributed the better-than-expected results to robust credit growth and healthy recovery of written off assets.

The bank’s net profit increased to Rs 763 crore from Rs 425 crore in the year-ago period.

Analysts tracking the bank had predicted a 33-35 per cent growth in bottom line, in view of the rising cost of funds.

However, the bank’s net interest margin (NIM) improved marginally to 3.2 per cent from 3.04 per cent, despite the cost of deposits increasing to 5.79 per cent from 5.53 per cent in the year-ago period. The average yield on advances fell marginally to 9.79 per cent from 9.99 per cent.

The stock is currently trading at 262 down 3% ( on 23 Oct , 08 at 13 Hrs IST )