State-owned Bank of India Monday reported widening of its net loss to 4,737.56 crore in the third quarter ended December 2018, hit by nearly two-fold jump in provisioning for bad loans.

Its net loss was 2,341.20 crore in the October-December period of 2017-18.

Total income of the bank, however, rose to 11,839.53 crore during the reported quarter of 2018-19, as against 10,376.03 crore in the same period a year ago.

Bank's provisions for bad loans soared to 9,179.48 crore in the December quarter, up from 4,373.06 crore in the same period previous year.

Although, the bank improved on its asset quality with the net non-performing assets (NPAs) trimming down to 5.87 per cent of the net advances as on December 31, 2018, as against 10.29 per cent by the end of December 2017.

Gross NPAs (or bad loans) were down slightly at 16.31 per cent of the gross advances from 16.93 per cent a year ago.

In absolute terms, the gross NPAs of the bank stood at 60,797.55 crore at end-December 2018 from 64,248.58 crore a year ago period. Net NPAs were valued at 19,437.35 crore as against 36,117.23 crore.

During the quarter ended December 2018, the bank has made additional provision of 5,098.74 crore in view of uncertainty of recovery and deterioration in value of underlying assets in respect of 331 NPA accounts, it said.

"In respect of RBI referred NCLT accounts (list 1 & 2), the bank has made a provision of 572 crore during the quarter ended December 31, 2018, due to uncertainty of recovery. The provision held in respect of NCLT accounts stood at 6,939.02 crore as on December 31, 2018, representing 100 per cent of the outstanding value," it added.

Bank of India said there was a recovery of 2,360.79 crore (including 561 crore received in Bhushan Power and Steel Ltd) with respect to accounts referred to the National Company Law Tribunal (NCLT) as per the list 1 of the Reserve Bank.

"Resolution of NCLT accounts to lead to lower gross NPAs," it said further.

Stock of the bank slumped 3.97 per cent at the close of business on BSE at 90.60.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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