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Bank of India posts a loss of Rs 3,571.4 crore in Q4FY20 due to higher provisions

Bank of India posts a loss of Rs 3,571.4 crore in Q4FY20 due to higher provisions

Bank of India posts a loss of Rs 3,571.4 crore in Q4FY20 due to higher provisions
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By Ankit Gohel  Jun 25, 2020 3:44:44 PM IST (Published)

Bank of India reported a loss of Rs 3,571.4 crore in the quarter ended March 2020 on account of higher provisions and low interest income. The bank had posted a net profit of Rs 251.8 crore in the year-ago quarter.

Bank of India reported a loss of Rs 3,571.4 crore in the quarter ended March 2020 on account of higher provisions and low-interest income. The lender had posted a net profit of Rs 251.8 crore in the year-ago quarter. Net interest income during Q4FY20 declined 6.2 percent to Rs 3,793 crore from Rs 4,044.5 crore, YoY. Global net interest margin (NIM) stood at 2.90 percent as against 2.93 percent.

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The Non-Interest Income of the state-run lender increased by 14.13 percent to Rs 1,688 crore from Rs 1,479 crore, YoY supported by rise in treasury income.
The bank’s operating profit increased by 15.20 percent to Rs 2,653 crore from Rs 2,303 crore, on year.
The bank's provisions on bad debts rose significantly to Rs 7,316.3 crore during the quarter under review from Rs 1,502.9 crore in the same quarter last year.
Asset quality of the bank during the quarter improved as gross non-performing assets (GNPA) fell 0.29 percent to Rs 61,549.93 crore from Rs 61,730.54 crore in the previous quarter. Gross NPA as a percentage of gross advances declined by 152 bps to 14.78 percent from 16.30 percent, QoQ.
Net NPA declined 28.8 percent to Rs 14,320.10 crore from Rs 20,113.34 crore while net NPA ratio fell over 200 bps to 3.88 percent from 5.97 percent sequentially.
Slippages during Q4FY20 were at Rs 2,764 crore versus Rs 6,716 crore, QoQ.
Provision Coverage Ratio takes a quantum jump to 83.75 percent in March 2020 from 77.15 percent in December 2020.
Bank of India's 41 percent of loan accounts and 46 percent of loan book are under the moratorium, said AK Das, CEO, Bank of India.
Around 62 percent of retail clients, 29 percent of SME clients, 48 percent of agri clients and 48 percent of corporate clients opted for the moratorium, Das added.
The shares of Bank of India reacted negatively to the earnings performance with the stock falling 3.28 percent to Rs 53.10 on the BSE at 2:30 pm.
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