Bank of India(BoI) a public sector lender on Thursday reported a net loss of Rs 3,571 crore in the March quarter, against a net profit of Rs.252 crore a year before, due to Rs 3,700 crore of extra provisioning for two large accounts.
The overall total provisions in the March quarter increased four times to Rs 8,141 crore year-on-year (y-o-y). The lender has provided Rs 414 crore on account of the Covid-19 pandemic.
Bank of India has granted moratorium to 41% of customers who want to opt for moratorium benefits.
Atanu Kumar Das, chief executive officer (CEO) and managing director (MD), Bank of India, said, “We are hopeful that the bank will be back in profit June quarter onward as extra provisioning may not be needed later.”
He specified that the bank has made provisioning about 10% in the March quarter itself on account of Covid-19.
The Reserve Bank of India (RBI) had earlier notified banks to provide 10%, which can be spread over two quarters respectively, on account of Covid-19 benefit.
The lender has also made further provision of Rs 271 crore in four accounts respectively, where the feasible resolution plan had not been implemented within 180 days of the review period.
The bank’s provision coverage ratio (PCR) raised to 83.74% at the end of March 2020, compared to 77.2% as of December 2019.
Net interest income (NII) during the quarter decreased by 6.2% y-o-y to Rs 3,793 crore. Similarly, net interest margin (NIM) declined by near about 3 basis points (bps) as compared to the same quarter in the last year.
The asset quality of the bank had presented better improvement in the March quarter. The gross non-performing assets (GNPAs) reduced to 152 bps sequentially to 14.78%. Similarly, net NPAs reduced 209 bps to 3.88% quarter-on-quarter.
Gross advances went up to Rs 4,16,521 crore as on March 31, 2020, from Rs 3,82,860 crore as on March 31, 2019, with a yo-y growth of 8.79%.
The current account savings account (CASA) level raised by 8.79% y-o-y to Rs 1,97,751 crore in March 2020. The CASA ratio standing at 41.5 % in March 2020.
The cost to income ratio significantly declined to 51.6% from 59.22% y-o-y. The bank’s capital adequacy ratio standing at 13.1% at the end of March 31, 2020.
