Bank of India shares decline over 6% post-Q3 results; here is why

Bank of India share price: Shares of Bank of India lost over 6 per cent in Monday's trade (February 5) and touched the intra-day low of Rs 138.7 apiece on BSE after the public sector lender last week reported its third quarter (Q3 FY24) results.

At around 10:35 a.m., shares of Bank of India traded 6.79 per cent, or Rs 10.3, lower at Rs 141.3 apiece. Meanwhile, its market capitalisation stood at Rs 64,351.96 crore at around the same time.

As per Zee Business analysts, the stock slid due to a decline in banks' net interest income (NII) and net interest margin (NIM).

How did Bank of India perform in Q3?

The public sector lender's NII, which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, was down 2.35 per cent to Rs 5,463 crore for the quarter under review from Rs 5,596 crore a year ago. Similarly, the bank's NII also decreased quarter-on-quarter (QoQ) by 4.8 per cent.

Additionally, its NIM, which denotes the difference between the interest income earned and the interest paid by a bank, also slid to 2.85 per cent from 3.08 per cent in the previous quarter.

On the other hand, net profit increased 62.4 per cent to Rs 1,869.5 crore against Rs 1,151 crore in the year-ago period. The bank's provisions were down 43.7 per cent to Rs 612 crore against Rs 1,087 crore in the corresponding period of the previous fiscal.

The gross non-performing assets (GNPAs) for the third quarter stood at 5.35 per cent against 5.84 per cent recorded in the previous quarter. Meanwhile, the net non-performing assets (NNPAs) stood at 1.41 per cent against 1.54 per cent in the September quarter.

Bank of India share price: Past performance 

In a year, shares of Bank of India have gained over 79 per cent against the Nifty 50's rise of over 23 per cent.

(With inputs from agencies)

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