Bank of India Q4 loss widens to nearly Rs 4,000 crore on higher bad loans

Bank of India said its asset quality worsened in the quarter ended March 31,2018. Gross non-performing assets (NPAs) hit 16.58% of the gross advances, as against 13.22% by end March 2017, the bank said in a regulatory filing.

business Updated: May 28, 2018 18:15 IST

Pedestrians walk past a Bank of India (BOI) branch in Mumbai, India, on Sunday, April 22, 2018. BOI is scheduled to announce full year earnings on May 22. Photographer: Dhiraj Singh/Bloomberg(Bloomberg)

Bank of India on Monday reported a widening of its net loss to Rs 3,969.27 crore in the March quarter due to higher provisioning for mounting bad loans.

It had reported a net loss of Rs 1,045.54 crore for the January-March period of the preceding fiscal, 2016-17. In the previous quarter, October-December, of 2017-18 the loss was at Rs 2,341.20 crore.

The bank’s asset quality worsened as on March 31, 2018. The gross non-performing assets (NPAs) hit 16.58% of the gross advances, as against 13.22% by end March 2017, the bank said in a regulatory filing.

Net NPAs rose to 8.26%, as against 6.90%.

In absolute terms, the gross NPAs or bad loans reached Rs 62,328.46 crore as on March 31, 2018, sharply up from Rs 52,044.52 crore a year ago. Net NPAs were Rs 28,207.27 crore, compared with Rs 25,305.05 crore.

Income in the March quarter of 2017-18 also fell to Rs 10,722.07 crore, from Rs 12,335.71 crore a year ago.

Provisions for bad loans for January-March, 2017-18 were increased to Rs 6,699.23 crore from Rs 4,483.53 crore year ago same period.

BoI said: “Due to non availability of profit, no dividend is proposed.”

The bank’s shares closed 4.71% higher at Rs 107.85 on the BSE.