Bank of India went down almost 8% at Rs.146.40; though it has recovered from this low, it remains firmly in the red, amongst the top five losers on the BSE.

Thanks to the 19% (YoY) and 53% (QoQ) lower provision and a 30% rise in non-interest or other income, Bank of India returned to the black with a net profit at Rs88 crore v/s loss of Rs741 crore (YoY).

Its asset quality actually improved –Gross NPA was at 13.05% v/s 13.22% (QoQ) and Net NPA too fell from 6.9% to 6.7%.

Despite the turnaround and improvement in asset quality, what really spooked the market was the news that it has exposure to 10 out of the dirty dozen referred to National Company Law Tribunal for insolvency proceedings. It stated the Bank has provided for 60% of its total exposure of Rs.8200 crore – which in itself is a huge number.

What is all the more disturbing to know is that it has 26 more such accounts referred to NCLT and their exposure stands at a total of Rs.3900 crore.