Nalco Q1 net profit down 4.4% to Rs 129 cr

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Shares of Bank of India (BOI) today rose by almost 4 per cent after the company swung into black by registering a standalone net profit of Rs 87.71 crore for the first quarter ended June.

The Mumbai-based bank had reported a net loss of ₹741.36 crore in the same period of the previous financial year as well as a net loss of ₹1,045.52 crore during the January-March quarter of 2016-17.

Its total expenses were higher at Rs 1,801.48 crore during the period under review from Rs 1,590.82 crore in the year-ago period. Provisions against loan losses was jacked up to 65% to Rs 116.64 crore, when compared to Rs 70.74 set aside a year ago for the same period.

Kamakodi said that NPA levels were moderating and the bank expects to contain net NPAs in the 1.75-1.99 per cent range by the end of this fiscal. Revenue from treasury operations fell 7.5% to Rs 173.38 crore, while corporate banking grew 22.6% to Rs 272.36 crore.

The provision coverage ratio improved to 63.54 per cent from 53.06 per cent previous year.

He said that the bank has asked for Rs 2500 crore capital from the government for this fiscal year and its plans to raise balance amount from the capital market and by selling non-core assets.

Net interest margin (NIM) - the difference between what the bank pays out as interest on deposits and what it earns from loans - increased to 4.47% from 4.07%. The bank's deposits increased by 9% to Rs 30,468 crore, while its advances grew 13% to Rs 24,058 crore.

The bank's scrip ended at Rs 158.45, up 3.77 per cent on the BSE, whose benchmark index Sensex dropped 0.68 per cent to settle at 31,797.84.

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