Bank of India posts Q3 loss at Rs 1510 cr, provisions spike 128%

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Moneycontrol Bureau

Bank of India has posted a massive loss of Rs 1,510 crore in quarter ended December 2015 against profit of Rs 173.4 crore in year-ago period, impacted by higher provisions and lower net interest income. Lower other income and operating profit also dented profitability.

Net interest income, the difference between interest earned and interest expended, declined 2.6 percent to Rs 2,708 crore in Q3 compared to Rs 2,780 crore in corresponding quarter of last fiscal.

Bank of India said provisions shot up 128 percent year-on-year and 11.3 percent sequentially to Rs 3,604 crore in Q3 following asset quality review conducted by the RBI.

Asset quality was very weak with gross non-performing assets (NPA) rising 163 basis points quarter-on-quarter and 511 bps year-on-year to 9.18 percent in Q3. Net NPA increased 94 bps QoQ and 275 bps YoY to 5.25 percent during the quarter.

In absolute terms, gross NPA jumped 22.2 percent QoQ & 118.8 percent YoY to Rs 36,519 crore and net NPA surged 21.3 percent QoQ and 98.6 percent YoY to Rs 19,978 crore in quarter ended December 2015.

Other income declined 13.8 percent year-on-year to Rs 1,047.3 crore and operating profit slipped 24.5 percent to Rs 1,409 crore during the quarter.

At 14:12 hours IST, the scrip of Bank Of India was quoting at Rs 84.55, down Rs 6.05, or 6.68 percent after hitting a 52-week low of Rs 83.50 on the BSE.