Mumbai: Bank of India (BoI) on Monday reported losses of 1,156.25 crore for the September quarter as bad loans continued to mount and provisions soared. The bank was expecting to recover 1,800 crore from the NCLT (National Company Law Tribunal) accounts this quarter, but the resolution process was delayed. The bank had reported profit of 179.07 crore in the year-ago period.

According to estimates of six analysts polled by Bloomberg, Bank of India was expected to post loss of 456.30 crore.

Its asset quality deteriorated as gross non-performing assets (NPAs) rose 24.85% to 61,560.65 crore in September quarter from 49,306.90 crore in the corresponding quarter of last year.

As a percentage of total loans, gross NPAs rose to 16.36% as compared with 12.62% in the year-ago quarter, while net NPAs were at 7.64% against 6.47%. The bank added bad loans worth 2,624 crore during the quarter.

The management expects to bring down the net NPA below 6% before the end of this financial year. “We expect to recover around 2,000 crore from resolution of accounts under NCLT in the third quarter," said Dinabandhu Mohapatra, managing director and chief executive officer, Bank of India.

Provisions and contingencies surged 71% to 3,343.27 crore in the quarter from 1,953.30 crore a year ago. On a quarter-on-quarter basis, it rose 30% from 2,564.19 crore. Other income fell 40% to 1,030.42 crore.

The management said that the bank has an exposure of 3,400 crore to the entire Infrastructure Leasing and finance Service (IL&FS) group, which includes 345 crore of exposure to the holding company.

On the operations front, the bank’s net interest income (NII), or the core income a bank earns by giving loans, was up marginally by 0.6% to 2,926.79 crore versus 2,908.24 crore last year.

Advances for the quarter fell 6.6% to 3.40 trillion, while deposits declined 5.8% to 5.12 trillion.

On Monday, Bank of India shares fell 4.85% to 87.25 on the BSE while the benchmark Sensex shed 1% to end the day at 34,812.99 points. The results were declared after market hours.

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