The Mumbai based Bank of India has recorded a decline in its net profits due to increase in its bad debts for the quarter ending September 30, 2012. It has posted 38.5 percent decrease in net profits, which stand at Rs. 302 crore in the current fiscal.
Its net interest income increased slightly by 15 percent, rising from Rs. 1904 crore to Rs. 2196 crore for the same period. It is to be noted that analysts had predicted an average increase in its net profits to the tune of Rs. 783 crore and a rise in its net interest income by Rs. 2227 crore for the quarter ending September.
The bank also reported a dismal asset quality for the same quarter. Its gross non-performing assets (NPAs) rose by 86 basis points on a quarter on quarter basis, being recorded at 3.42 percent. In addition to this, its net NPAs also increased on a quarter on quarter basis by 35 basis points and in the current quarter it stood at 2.04 percent.
Its second quarter financials show that the gross NPAs have risen by 32 percent, at Rs. 8899 crore and its net NPAs have risen by 18.5 percent, at Rs. 5228 crore.