Bank of India Q1 net loss at Rs 741 crore

 Bank of India posted a loss of Rs 741 crore for the quarter ended June 30, 2016 compared with a profit of Rs 130 crore in the comparable period.

The bank, however, pruned its losses on a sequential basis. BoI had posted a net loss of Rs 3,587 crore in the fourth quarter of the previous fiscal (Q4FY16).

“There could be some residual asset quality challenges during the rest of the fiscal but on a much lower scale. The bank’s performance is expected to improve in FY17 and we are cautiously optimistic about an improved performance in FY17,” BoI managing director and chief executive officer Melwyn Rego said.

Net interest income for the bank also declined to Rs 2,775 crore during the quarter compared with Rs 2,913 crore, a year ago. Gross non performing assets (NPAs) ratio stood at 13.38% compared with 6.8% as on June 30, 2015 and 13.07% as on March 31, 2016. Net NPA ratio during the quarter stood at 7.78% compared with 4.11% in Q4FY16 and 7.79% in Q1FY16. Total restructured standard assets of the bank were Rs 11,496 crore as on June 30, 2016. The total stressed assets (GNPA + restructured standard assets) were 16.35% of the gross advances.

Provisions and contingencies (excluding tax provisions) made by the bank stood at Rs 2,770 crore in Q1FY17. Provisions against NPAs/bad debts written off stood at Rs 2,453 crore in Q1FY17. The provision coverage ratio (PCR) was at 53.06% on June 30, 2016.