Bank of India posts Q1 loss of Rs741 crore on stressed assets
Bank of India’s gross non-performing assets (NPAs) in the first quarter almost doubled to Rs51,874.50 crore
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Mumbai: Bank of India Ltd on Friday reported a net loss of Rs.741.36 crore in the June quarter against a profit of Rs.129.72 a year ago.
As a result, Bank of India’s provisions increased to Rs.2,770.19 crore this quarter compared to Rs.5,470.36 crore last quarter and Rs.1,514.73 crore a year ago.
Provision coverage ratio stood at 53.06% for the quarter ended in June.
“The bank was required to make phased prudential provisions on corporate debt restructuring cases at 2.50% per quarter. However, the bank has made additional provision of Rs.110.33 crore representing the remaining balance of next three quarters,” Bank of India said in its notes to the profit and loss account.
According to a Bloomberg poll of 14 analysts, the bank had been expected to post a net loss of Rs.387.8 crore for the June quarter.
Net interest income, or the core income a bank earns by giving loans, decreased marginally to Rs.2,802.17 crore this quarter compared to Rs.2,912.68 crore a year ago.
Gross non-performing assets (NPAs) almost doubled to Rs.51,874.50 crore this June from Rs.26,889.17 crore a year ago.
As a percentage of total loans, gross NPAs stood at 13.38% at the end of the June quarter, compared with 13.07% in the previous quarter and 6.08% in the year-ago quarter.
Net NPAs stood at 7.78% for the June quarter compared to 7.79% last quarter and 4.11% a year ago.
Capital adequacy ratio stood at 12.10%, according to Basel III norms for the quarter.
Shares of Bank of India closed 10.25% higher at Rs.114 apiece on BSE, while the benchmark Sensex index rose 1.05% to 28,152.40 points.