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Bank of India Q4 loss widens to Rs 3587 cr on higher provisions

Bank of India Q4 loss widens to Rs 3587 cr on higher provisions

Chillicious Team

Public sector lender Bank of India has disappointed street on Tuesday by reporting a loss of Rs 3,587 crore in Q4 that widened significantly compared to loss of Rs 56 crore in year-ago period. This was majorly led by provisions that shot up 52 percent QoQ and 142.5 percent YoY to Rs 5,470 crore and partly because of lower other income.

Net interest income, the difference between interest earned and interest expended, grew by 11.9 percent to Rs 3,187 crore but other income declined 21 percent to Rs 883.6 crore compared to corresponding period of last fiscal.

Operating profit increased marginally to Rs 1,464.2 crore from Rs 1,426.55 crore on yearly basis.

Bank of India said provision coverage ratio stood at 51.14 percent as on March 2016 against 54.50 percent as of December 2015 and 52.4 percent in March 2015.

Asset quality worsened in March quarter with the gross non-performing assets (NPA) climbing 389 basis points sequentially to 13.07 percent and net NPA rising 254 bps to 7.79 percent.

In absolute terms, gross NPA jumped 36.6 percent to Rs 49,879 crore and net NPA shot up 40 percent to Rs 27,996 crore compared to preceding quarter.

During the quarter, the bank has tax write-back of Rs 419 crore against Rs 772.8 crore in year-ago period.

The scrip of Bank of India, which announced earnings after market hours, closed down 0.25 percent at Rs 80.35 after hitting a 52-week low of Rs 79.15 on BSE.