Bank of India, an esteemed bank in the country, has reported a net loss of Rs.1,156 crore in the second quarter of FY2019. However, in the second quarter of the previous fiscal, the bank had witnessed a net profit of Rs.179.07 crore. The state-owned bank had recorded a profit of Rs.95.11 crore in the previous quarter i.e. the April-June quarter.
The reason for the loss faced by the bank was reported to be the rise in the provision towards bad loans. While the provision towards bad loans was Rs.1,866.82 crore in the July to September quarter of FY2018, it was Rs.2,827.62 crore in FY2019 in the same quarter.
On a good note, the net interest income earned by the company has increased marginally from Rs.2,908 crore in FY2018 to Rs.2,927 crore in FY2019.
During the July-September quarter, the total income of the bank dropped to Rs.10,800.24 crore against Rs.11,600.47 crore in the year-ago period.
In terms of the asset quality, the gross NPA ratio as well as the net NPA ratio was lower than it was in the previous quarter. While the gross NPA reduced marginally from 16.66 per cent to 16.36 per cent, the net ratio fell from 8.45 per cent to 7.64 per cent.
The shares of Bank of India closed at Rs.87.25 on Monday, a 4.85 per cent reduction. The stock had increased by 16 per cent in the past month and 2 per cent in the past 3 days.
Sources: Money Control and Business Line