Public sector lender Bank of India saw third-quarter net loss due to higher provisioning for bad debts and treasury (MTM) losses. The bank saw a divergence of Rs 140.57 billion between the central bank's assessment of non performing assets and that of the bank.
The bank's net loss was Rs 23.41 billion for the quarter ended December, compared to a profit of Rs 1.01 billion in the year-ago quarter. Provisions for bad loans jumped 72% to Rs 43.73 billion.
The gross non-performing assets (NPAs), as a percentage of total advances, in the present quarter, rose to 16.93 per cent, against 13.38 per cent from the year-ago quarter.
Asset quality also worsened sequentially with the gross NPA ratio for September quarter at 12.62 per cent.
The bank's GNPA saw an addition of Rs 149.42 billion during the quarter to Rs 642.59 billion.
The bank's net interest income, or the interest earned minus interest expended, fell 12 per cent on a year-on-year basis to Rs 25.01 billion. Non-interest income for the quarter fell 41 per cent to Rs 10.41 billion in December quarter over year-ago quarter.