On July 31, Bank of India shares jumped 3% in early morning trade after the lender described a robust set of earnings for the April-June quarter amid an improvement in asset quality.

Bank of India logged an over threefold upsurge in its net profit for the period under review to Rs 1,551 crore versus Rs 561 crore a year ago.

Its net interest income also mounted 45% YoY to Rs 5,915 crore, with a 51 bps upsurge in net interest margin to 3.37% from 2.87% last year.

The state-run lender’s asset quality enhanced with its gross non-performing assets (NPAs) down to 6.67% from 7.31% in the previous quarter. Its net NPA, too, tumbled to 1.65% from 1.66% QoQ.

At 12.10 pm, shares were trading at Rs 86.25 on the National Stock Exchange, up 1.9% from the preceding close.

Foreign brokerage firm Morgan Stanley commended the lender’s robust asset quality and balance sheet. It reserved its ‘overweight’ call on Bank of India, with a price target of Rs 120. The NIIs and core revenues of the lender came in line with its estimation even after adjusting higher interest income amid an income tax (IT) refund.