State-run lender Bank of India has reported a ₹1,156 crore net loss for the quarter ended October 31 due to increase in provision for bad loans as well as mark-to-market loss on its bond portfolio.
The lender reported a net profit of ₹179 crore in the July-September period of the last fiscal while in the April-June quarter of FY19, net profit was ₹95 crore.
“The net profit was impacted by higher loan loss provisions due to aging of NPAs and MTM provisions. Also, recovery of around ₹1,800 crore from the sale of assets being processed under NCLT [National Company Law Tribunal] got postponed to Q3,” the public lender said in a statement.
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The net Interest income was almost flat at ₹2,927 for the period under review while non interest income declined to ₹1,030 crore from ₹1,706 crore reported in the year ago period.
“There was marked improvement in recovery in written off account which went up by 231.8% from ₹85 crore in September, 2017 to ₹282 crore in September, 2018,” the bank said.
The bank gross non-performing asset (NPA) ratio increased to 16.36%, from 12.62% in the year-ago period. The fresh slippages were ₹2,624 crore, which the bank said is marginally lower than the total upgrades and recoveries.
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The provisions for NPA shot up to ₹2,827 crore, from the ₹1,866 crore in the year-ago period.
The bank has reported higher net interest margin at 2.27% during the quarter as compared to 2.15% of the same period of the previous year.