Photo: Pradeep Gaur/Mint
Photo: Pradeep Gaur/Mint

Bank of India posts Rs1,506 crore loss in Q3

The net loss widened from Rs1,126 crore reported in the July-September period

Mumbai: State lender Bank of India, on Thursday, reported a net loss of 1,506 crore for the fiscal third quarter, owing to rising provisions for bad loans and a drop in net interest income (NII).

The net loss widened from 1,126 crore reported in the July-September period. Net profit in the December quarter last year, stood at 173.34 crore.

The bank’s provisions for bad loans was 3,604 crore as compared with 1,581 crore a year ago. The provisions for the July-September quarter was 3,237 crore.

Provisions rose on account of an intense asset quality review conducted by the Reserve Bank of India (RBI) in the October-December quarter, where the regulator asked banks to consider providing for many stressed assets which were classified as standard.

Gross NPA ratio as a share of gross advances stood at 9.18% as on 31 December as compared with 7.55% in the second quarter. As an absolute number, gross NPAs for the third quarter stood at 36,519 crore, up 17% as compared with 29,893 crore reported in the second quarter.

Post the increased provisioning net NPA ratio for the December quarter stood at 5.25% of total assets. It stood at 4.31% in the September quarter.

NII, or the difference between interest expended on deposits and that earned on loans, stood at 2,708 crore, lower than 2,780 crore reported a year ago. Other income for the October-December quarter stood at 1,047 crore, lower than 1,215 crore a year ago.

At 1:35pm, Bank of India shares were trading at 84.45 on the BSE, down 6.79% from its previous close, while the benchmark index Sensex was at 23,218.55 points, down 2.27%.

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