Signage of Bank of India stands at its headquarters in Mumbai, India. (Photographer: Anirudh Saligrama/BloombergQuint)

Q4 Results: Bank Of India’s Losses Continue To Widen In March Quarter

Bank of India joined the growing list of public sector lenders reporting large losses in the January-March quarter as it increased provisioning for bad loans.

Net loss widened to Rs 3,969.2 crore in the fourth quarter from Rs 1045.5 crore in the same period last year. The loss was more than the Rs 1,413 crore estimated by analysts tracked by Bloomberg.

The state-owned lender's bad loans moderated after rising sharply in the third quarter. Gross non-performing asset, as a percentage of total assets, fell to 16.58 percent from 16.93 percent in the three months ended December. In absolute terms too, bad loans fell 3 percent to Rs 62.328.5 crore. Net NPAs fell 2 percentage points to 8.3 percent. Provisions for bad loans rose 53 percent to Rs 6,699.2 crore on a sequential basis.

India's public sector banks, forced to accelerate the clean-up of bad loans on their books, have reported losses over Rs 50,000 crore just in the last quarter of FY18. Data compiled by BloombergQuint showed that among the PSU banks that have reported earnings, the total net loss has risen to almost Rs 57,000 crore from Rs 6,643 crore in the same quarter last year.

Key Highlights

  • Net interest income fell 26 percent year-on-year to Rs 3,468.5 crore.
  • The lender reported a gross NPA divergence of Rs 14,057 crore from the Reserve Bank of India's audit for financial year 2017.
  • It had a provision coverage ratio of 65.8 percent as of March-end.
  • Capital aduequacy ratio improved to 12.94 percent from 12.05 percent a quarter ago.