JOIN USState-owned Bank of India (BoI) more than halved its losses to Rs 1,045.54 crore for the quarter ended March 31, 2016, compared with a loss of Rs 3,587.11 crore for the same quarter previous fiscal.
The bank, however, had posted a profit of Rs 101.72 crore for the quarter ended December 31, 2016.
Provisions and contingencies other than tax for BoI during the quarter stood at Rs 4,736.21 crore, compared with Rs 2,302.57 crore in the sequential quarter and Rs 5,470.36 crore in Q4FY16. Provisions for non performing assets (NPA) during the quarter were at Rs 4,483.53 crore, compared with Rs 2,546.2 crore in the sequential quarter and Rs 5,441.67 crore in the year ago period.
Asset quality for the bank during the quarter dipped marginally on a sequential basis with gross NPAs at 13.22%, compared with 13.38% in the sequential quarter and 13.07% in Q4FY16. Net NPAs for the bank, however, rose marginally on a sequential basis at 6.9%, compared with 7.09% in Q3FY17 and 7.79% in the same period previous fiscal.
According to the bank’s chairman and managing director Dinabandhu Mohapatra, the bank is working on a five point strategy to improve performance going forward. “We are committed towards resolution and recovery in non performing assets besides looking at managing slippages,” Mohapatra said. The bank is also looking at rebalancing of credit portfolio, focussing on CASA, new HR initiatives and new IT initiatives as part of its moves to better performance going forward, Mohopatra added.
Mohapatra also specified on moves being taken by the bank to reduce NPA ratios. “We have initiated few arrangements to crack non performing accounts. We are also aiming at reviving units which have started receiving cash flows,” Mohapatra said.
Net interest income for the bank during the quarter rose 9% to Rs 3,469 crore, against Rs 3,187 crore in the comparable period previous fiscal. Net interest margin (NIM) during the quarter, on domestic operations, improved to 2.8% in the quarter from 2.43% in the same period previous fiscal while NIM on overseas operations stood at 1.31% during the quarter. Overall, the global NIM improved to 2.39% during the quarter from 2.06% in Q4FY16.