11Following the trend of public sector banks booking losses in the third quarter of FY16, Bank of India posted a net loss of ₹1,505.58 crore in the quarter against a net profit of ₹173.38 crore in the same year-ago quarter.
Total income fell to ₹11,087 crore in Q3 FY16 from ₹11,947.45 crore in Q3 FY15.
Net interest income, the difference between interest earned and interest expended, declined 2.6 per cent to ₹2,708 crore from ₹2,780 crore in the same quarter last fiscal.
Net on-performing assets (NPAs) as a per cent of total loans more than doubled to 5.25 per cent (2.5 per cent). The bank’s capital adequacy ratio as per Basel-III norms stood at 11.28 per cent, up 60 basis points year-on-year.
Provisioning for bad loans more than doubled to ₹3,603 crore (1,580 crore in Q3 FY15). During the reporting quarter, the bank changed its accounting policy of provisioning in respect to NPAs classified as doubtful.
Had the earlier accounting policy been followed, the provisioning for NPAs in the quarter would have been higher by ₹1,789.5 crore with consequential increase in net loss by ₹1,170.25 crore.
The bank said that it had deferred provision of ₹709.31 crore in respect of certain NPAs and loss of ₹403.21 crore on sale of certain NPAs to be amortised over a period of three quarters commencing from June 2015.
Bank of India’s shares closed at ₹85.20 apiece, down 5.96 per cent over its previous close on the BSE.