Photo: Mint
Bank of India Ltd posted a quarterly loss on Monday as the state-run lender set aside more provisions for bad loans. Net loss was Rs 11.56 billion for the three months ended Sept. 30, compared with a profit of 1.79 billion rupees a year earlier. Provisions for bad loans jumped 51.5 percent to Rs 28.28 billion, while total provisions surged 71.2 percent to Rs 33.43 billion.
However, asset quality improved slightly from the previous quarter, with gross bad loans as a percentage of total loans standing at 16.36 percent at end-September, compared with 16.66 percent at end-June. This was still higher than 12.62 percent a year ago.
Shares of the lender closed 5 percent lower ahead of the results.