MUMBAI: Bank of India (BoI) is back in the black with a net profit of Rs 87.7 crore for the quarter ended June 2017 against a net loss of Rs 1,045.5 crore during the corresponding period a year ago.
The surprise net profit was on account of increase in other income and improved asset quality. While net interest income fell 8.7 per cent to Rs 2,533 crore over the previous year, the bank’s other income shot up 30.1 per cent to Rs 1,611 crore.
The turnaround plan being put in place focuses on internal strength and the bank is implementing sector specific one-time settlement schemes, which are beginning to show results, said Dinabandhu Mohapatra, MD & CEO, BoI.
Meanwhile, BoI has an exposure of Rs 8,200 crore to 10 out of the 12 accounts identified for insolvency proceedings by the Reserve Bank of India. It will have to make additional provisioning of Rs 915 crore over three quarters against these exposures. Overall provisions fell 51.9 per cent to Rs 2,156 crore over the preceding quarter.
Gross NPAs in absolute terms fell 2 per cent over the previous quarter to Rs 51,109 crore, while net NPAs dipped 6.7 per cent. The stressed assets ratio dropped to 16.03 per cent from 16.47 per cent in June, 2016. Slippages at Rs 4,037 crore, recovery at Rs 1,360 crore and write offs at Rs 2,324 crore in Q1.