Bank of India’s fresh slippages have gone up in the second quarter of the current financial year due to one telecom account which turned non-performing, said Managing Director and Chief Executive Officer Rajneesh Karnatak.
“Our total additions (slippages) have gone up in the July-September quarter due to one telecom account falling in to NPA,” Karnatak said during post-earnings call.
In July-September quarter, total additions for the bank increased to Rs 2,546 crore, from Rs 1,930 crore in a quarter ago period and Rs 1,650 crore in a year-ago period.
Of the total additions, fresh slippages consist of Rs 2,357 crore in July-September quarter, and Rs 189 crore of debits in existing NPA accounts, as per investor presentation.
A slippage occurs when a bank's loan becomes a non-performing asset on account of the borrower not paying interest for over 90 days.
On the special mention account (SMA)-2 accounts front, Karnatak said it has gone up in this quarter due to three to four big accounts missed the payments.
“The SMA-2 loans includes accounts which is state PSU account backed by the government,” Karnatak said while addressing Moneycontrol’s query.
SMA-2 loans of Bank of India has increased to Rs 2,370 crore, which is 0.40 percent of standard advances in the July-September quarter, from Rs 1,220 crore, or 0.24 percent of standard advances in a year ago period.
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