BoR posts Rs 92-cr loss

Bank of Rajasthan (BoR) today announced a net loss of Rs 92.3 crore for the quarter ended March 31, compared to a profit of Rs 2.93 crore in the same quarter in the previous financial year, due to increased employee costs.

The lender, which will be merged with ICICI Bank, provided an additional Rs 150 crore for employee superannuation benefits and Rs 50 crore for wage revisions in the financial year ended March 31. The net loss resulted in the bank’s capital adequacy ratio falling to 7.74 per cent — below the regulatory minimum of 9.0 per cent.

Net interest income grew 27 per cent to Rs 103.96 crore in the quarter under review from Rs 81.59 crore in the quarter ended March 31, 2009. Operating expenses more than doubled to Rs 194 crore due to a nearly threefold increase in employee costs.

The bank also saw deterioration in its quality of assets, with gross non-performing assets (NPAs) rising to Rs 293.8 crore as of March 31, compared to Rs 160.9 crore in the previous year. Gross NPAs, as a percentage of advances, were 3.46 per cent as of March 31, compared to 2.04 per cent at the end of the previous financial year.

The bank provided Rs 69.47 crore for bad loans in the fourth quarter, up from Rs 13.44 crore in the year-ago quarter. The bank’s provision coverage ratio, or provisions as a percentage of gross NPAs, was 54 per cent.