Bank of India net loss soars to Rs 4,738 crore in October-December quarterhttps://indianexpress.com/article/business/banking-and-finance/bank-of-india-net-loss-soars-to-rs-4738-crore-in-october-december-quarter-5558482/

Bank of India net loss soars to Rs 4,738 crore in October-December quarter

The bank’s gross non-performing assets (NPAs) came down from Rs 62,328 crore in March 2018 and Rs 61,561 crore in September 2018 to Rs 60,797 crore in December 2018.

Bank of India, Bank of India loss, Bank of India debt, Bank of India  bad loans, Bank of India October-December reports, banking news, business news, indian express
Net NPA decreased from Rs 28,207 crore in March 2018, Rs 25,994 crore in September 2018 to Rs 19,437 crore in December 2018. (File)

Bank of India, which is under the prompt corrective action (PCA) framework of the Reserve Bank of India, has reported a net loss of Rs 4,738 crore in the October-December (Q3) 2018 quarter compared to a net loss of Rs 2,341 crore a year ago as it set aside Rs 9,719 crore for provisions during the quarter compared to Rs 4,373 crore a year ago.

The bank has made additional provisions for certain NPA accounts, including 100 per cent provisions for all the NCLT accounts, as a result of which the loan loss provisions increased, which has impacted the profit after tax, Dinabandhu Mohapatra, MD & CEO, said at a press conference

The bank’s gross non-performing assets (NPAs) came down from Rs 62,328 crore in March 2018 and Rs 61,561 crore in September 2018 to Rs 60,797 crore in December 2018. Gross NPA ratio improved from 16.58 per cent in March 2018 and 16.36 per cent in September 2018 to 16.31 per cent December 2018. Net NPA decreased from Rs 28,207 crore in March 2018, Rs 25,994 crore in September 2018 to Rs 19,437 crore in December 2018.

“There has been marked reduction in net NPA ratio over last one year. From 10.29 per cent in December 2017, the net NPA ratio has come down to 7.64 per cent in September 2018 to 5.87 per cent in December 2018. The provision coverage ratio improved from 56.96 per cent in December 2017, 69.12 per cent in September 2018 to 76.76 per cent in December 2018,” the bank said.

Advertising

In December 2018, the government had infused Rs 10,000 crore into the bank as part of its recapitalisation plans. This helped the bank step up provisioning and improve its capital position. Bank of India has been under PCA since 2017, much like at least 10 other public sector lenders. The regulator mandates banks under PCA to shut down non-performing branches and reduce exposures to borrower segments which attract higher risk weight.

Global business of the bank stood at Rs 887,931crore as on December 31, 2018 against Rs 905,541 crore as on December 31, 2017. “Global business contracted mainly because of decline in buyers credit in overseas business. The domestic advances increased by 11.10 per cent from Rs. 280,670 crore in December 2017 to Rs. 311,815 crore in December 2018.”