BackBank 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
Premium
Mumbai: Bank of India Ltd on Friday reported a net loss of ₹ 741.36 crore in the June quarter against a profit of ₹ 129.72 a year ago.
As a result, Bank of India’s provisions increased to ₹ 2,770.19 crore this quarter compared to ₹ 5,470.36 crore last quarter and ₹ 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 ₹ 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 ₹ 387.8 crore for the June quarter.
Net interest income, or the core income a bank earns by giving loans, decreased marginally to ₹ 2,802.17 crore this quarter compared to ₹ 2,912.68 crore a year ago.
Gross non-performing assets (NPAs) almost doubled to ₹ 51,874.50 crore this June from ₹ 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 ₹ 114 apiece on BSE, while the benchmark Sensex index rose 1.05% to 28,152.40 points.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
