Bank of India records profit at Q1

Kolkata, Aug 9 : State-run Bank of India (BoI) on Wednesday reported a net profit of Rs 87.71 crore in the first quarter which ended on June 30, compared with a loss of Rs 741.36 crore in the year-ago period.
The lender's provision for non-performing assets (NPAs) in the quarter under review stood at Rs 2,156.21 crore, down by 12 per cent from Rs 2,452.61 crore in the corresponding quarter last fiscal.
The bank's total income during the period was Rs 11,106.61 crore, up by 4.14 per cent from Rs 10,664.36 crore in same period in the last fiscal.
"In terms of the RBI circular... the Board of Directors has approved standard assets provision of 0.10 per cent over and above the regulatory minimum in respect of the bank's advances pertaining to textiles, iron and steel and telecommunications sectors. Accordingly, an additional provision of Rs 13.23 crore has been made," it said.
In the said quarter, BoI's gross NPAs stood at Rs 51,019.11 crore, down by 1.6 per cent from Rs 51,874.5 crore in the corresponding period last year.
In terms of net NPAs, it was at Rs 24,369.98 crore during the three months ended June 30, as against Rs 28,260.40 crore in the same period in the last fiscal.
In the quarter under review, the gross NPAs as a percentage of total advances was at 13.05 per cent, improving from 13.38 per cent in the corresponding period last fiscal while its net NPAs came down to 6.70 per cent in the quarter as against 7.78 per cent in the year-ago period.
"As per the RBI directions for initiating insolvency process-provisioning norms... the bank is required to make additional provision estimated at Rs 915 crore in respect of accounts covered under provisions of the Insolvency and Bankruptcy Code, to be proportionately spread over three quarters from the second quarter so that the required provisions are fully in place by March 2018," the lender said.
The BoI said its return on assets remained positive (0.05 per cent) in the quarter compared with a negative RoA (-0.45 per cent) in the same quarter last fiscal.