Public sector lender Bank of India has posted a net loss of Rs 56 crore at the end of the fourth quarter as compared to net profit of Rs 557.51 crore in the same period last year on account of high provisions for bad loans. The shares plunged 5.98% after the results were announced.
Asset quality of the bank worsened with gross Non Performing Assets (GNPA) at 5.39% as compared to 3.15% a year ago. The amount of GNPA shot up to Rs 22193.24 crore at the end of March quarter as compared to Rs 11868.6 crore in the corresponding period last year. Net NPA also increased to 3.36% from 2% at the end of Q4FY14.
The outstanding restructured book was Rs 28,235 crore. It restructured loans worth Rs 2,743 crore in fourth quarter ended March 2015. Loans worth Rs 859 crore were sold to asst reconstruction companies in the January-March quarter.
The provision coverage ration had deteriorated from 58.6% in March 2014 to 52.4% in March 2015. Provisions for bad loans increased by 45.7%, up 42.7% quarter-on-quarter to Rs 2,255.5 crore during March quarter compared to Rs 1,547.3 crore during the same period last year.
V R Iyer, Chairperson & Managing Director of Bank of India said that some accounts which were showing irregular payments have been treated as NPAs. “This classification will act as a pressure on borrowers to make payments,” she added. Net interest income also fell by 6.6% year-on-year to Rs 2,847 crore.
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