Posts a net profit of Rs 87.71 crore as compared to a net loss of Rs 374.97 crore a year ago
Public sector lender Bank of India (BoI) wiped off its losses to report a net profit of Rs 87.71 crore as compared to a net loss of Rs 374.97 crore a year ago on a the back of aggressive write-offs or one-time settlement with errant borrowers, which led to lower provisions for bad loans and higher recoveries.
The other income, which climbed 30.08% from a year ago to Rs 1,610.96 crore, also boosted the bank’s profitability during the quarter, which was led by treasury gains of Rs 648 crore.
The bank’s write–off during the quarter more than doubled to Rs 2,324 crore but lesser than the Rs 3,983 crore that the bank wrote off in the preceding quarter ended March 31, 2017. The recoveries during the quarter were at Rs 1,360 crore, higher than the Rs 970 crore in the same period last year.
Dinabandhu Mohapatra, managing director and chief executive officer, BoI, told reporters in a press conference, “Write-off is not a large number. As we step up our recovery efforts, the write-offs will come down. But the gross NPAs (GNPAs) of the bank has been coming down both sequentially and also over the previous year. We have also asked for a capital infusion of Rs 2,500 crore from the government. The bank will try to sell its non-core assets.”
The bank has already floated a request for proposal (RFP) to sell its 29.90% stake in STCI Finance Ltd and hopes to conclude the sale during the quarter.
The shares of the bank rose 3.77% to close at Rs 158.45 on the BSE.
The GNPAs of the bank stood at Rs 51,019 crore, lower than Rs 51,875 crore reported a year ago and Rs 51,019 crore in the preceding quarter.
This resulted in the provisions and contingencies falling 19% to Rs 2,245.28 crore from Rs 2,770.19 crore in the same quarter last year. As a percentage of total loans, GNPAs fell to 13.05% as compared to 13.22% in the previous quarter and 13.38% in the year-ago quarter. Net NPAs declined to 6.7% in the June quarter compared to 6.9% in the previous quarter and 7.78% in the same quarter last year.
Net interest income (NII), or the core income a bank earns by giving loans, decreased 8.7% to Rs 2,533.03 crore from Rs 2,775.17 crore last year.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "BoI")
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}