Public sector Bank of India has reported a steep loss of Rs 3,587 crore in the fourth quarter ended March 2016 with bad loans and provisions doubling during the year. The bank had reported a net loss of Rs 56.14 crore in the same quarter of last year.
Gross NPAs of the bank more than doubled from Rs 22,193 crore in Q4 of last year to Rs 49,879 crore in Q4 FY 2016. Net NPAs moved up from Rs 13,517 crore to Rs 27,996 crore during the same period. Total provisions (other than taxes) increased from Rs 2,256 crore to Rs 5,470 crore in March 2016 quarter on a year-on-year basis.
With this, the cumulative loss of 22 public sector banks which have declared their fourth quarter results has crossed the Rs 19,500 crore mark. The main reason behind this negative swing from a total profit of Rs 4,464 crore that they had reported in the same quarter last year is a 150 per cent surge in provisions, necessitated by their gross non-performing assets almost doubling (Y-o-Y) to over Rs 3.5 lakh crore.
The biggest loss was reported by Punjab National Bank at Rs 5,367 crore. Bank of Baroda made a loss of Rs 3,230 crore for the fourth quarter ended March 2016 and registered a 146 per cent jump in NPAs to Rs 40,521 crore from Rs 16,261 crore in the same period of last year.
The ratio of gross NPAs moved up from 5.39 per cent last year 13.07 per cent in Q4 of whereas the net NPA ratio moved up from 3.36 per cent to 7.79 per cent. The provision coverage ratio stood at 51.14 per cent as of March 2016.
According to Melwyn Rego, MD and CEO, Bank of India, total standard restructured advances stood at Rs 12,872 crore in March 2016 against Rs 21,828 crore in March 2015 and Rs 17,270 crore in December 2015. Total stressed assets (NPA and restructured standard advances), as per RBI norms stood at Rs 57,586 crore accounting for 15 per cent of global advances.
During the quarter, total income also fell to Rs 11,384.91 crore as against Rs 12,286.98 crore a year ago. For FY16, the bank posted a net loss of Rs 6,089 crore as against a profit of Rs 1,708.92 crore in the previous fiscal.
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