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BoI slips into red, net loss at Rs 2341 cr

BoI slips into red, net loss at Rs 2341 cr

BOI's net interest income (NII) saw decline of 12.62% to Rs 2,501.23 crore in Q3FY18, as against Rs 2,862.61 crore a year ago the same period.

With gross NPA ratio slipping to 20.1% at the end of December, 2017 from 18.8% a quarter back and 15.98% a year ago, the bank had to nearly double its provision to Rs 1074 crore compared with Rs 588.5 crore a year ago leading to the higher net loss.

On a sequential basis, however, the provisions stand reduced by 26.76 per cent and are down by about Rs 6.05 billion quarter on quarter.

The banking sector has reported a collective loss of over Rs 4,200 crore for the quarter ended December 2017 as large losses reported by public sector banks have completely wiped out profits earned by large private banks. It was Rs 11,594 crore in the year-ago period, the bank said in a regulatory filing.

The bank had already received Rs 173.06 crore from government last month as capital infusion, and will be getting another Rs 4,964 crore from the government as part of the recapitalisation plan.

The lender provided Rs 167.44 crore during the third quarter of 2017-18 in respect of seven accounts covered under provisions of the Insolvency and Bankruptcy Code (IBC), it said.

As per data from the Reserve Bank, nine public sector banks, out of the total 21, had gross non-performing asset ratio of above 15 per cent (the percentage of bad loans in terms of total loans outstanding) as of September 30, 2017.

Stock of the bank closed 1.61 per cent up at Rs 144.85 on BSE. The provision coverage ratio was at 59%.

This is unedited, unformatted feed from the Press Trust of India wire.