State-run lender Bank of India reported a ₹3,969-crore loss in the quarter ended March 31, fuelled by an increase in provisions for bad loans and losses in the bond portfolio.
The bank had reported a loss of ₹1,045 crore a year earlier, while the quarter ended December saw a loss of ₹2,341 crore. The bank’s asset quality worsened with gross non-performing assets (NPAs) reaching 16.58% of gross advances, compared with 13.22% year earlier, while net NPAs rose to 8.26% from 6.9%. Gross NPAs or bad loans rose to ₹62,328.46 crore on March 31, 2018, from ₹52,044.52 crore a year earlier. Provisions for bad loans increased to ₹6,699.23 crore from ₹4,483.53 crore.
“We are going in the right direction and hopefully, next quarter will be stronger,” said Dinabandhu Mohapatra, MD and CEO, BoI.
‘FY19, a new beginning’
“If you see the kind of response we are getting from NCLT [National Company Law Tribunal], all the challenges [are] getting stabilised. I am confident FY19 will be a new beginning for all banks and Bank of India, in particular.” Banks have taken up accounts defaulting on loan repayments to bankruptcy courts for resolution.
The first major resolution was achieved earlier this month when Tata Steel acquired Bhushan Steel and banks were paid dues, albeit with a haircut.
