Bank of India
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The Times of India, May 25 2016
BoI's Rs. 6,089cr FY16 loss highest ever by a PSB
Losses for public sector banks continue to pile up as they make provisions for large corporate accounts identified by the Reserve Bank of India as ones that need to be classified as defaulters. Bank of India on Tuesday reported a net loss of Rs 6,089 crore for the financial year ended March 2016 -the highest ever by an Indian bank. The bank had reported a net profit of Rs 1,708 crore for FY15.
For the fourth quarter ended March 2016, Bank of India posted a net los of Rs 3,587 crore as against a loss of Rs 56 crore in the corresponding quarter last year.
Following Bank of India's results, collective losses of public sector banks in the fourth quarter have crossed Rs 20,000 crore. Banks have done one round of provisions in the third quarter and the remaining provisions are being made in the fourth quarter.
Bank of India's losses have surpassed that of Bank of Baroda, which reported an annu al loss of Rs 5,396 crore for FY16 as against a profit of Rs 3,398 crore in FY15. Earlier, IDBI Bank had reported a net loss of Rs 3,664 crore for FY16 as against a profit of Rs 873 crore in FY15.
Bank of India's gross nonperforming assets as a percentage of total loans rose to 13.07% in the quarter ended March from 9.18% in the quarter ended December 2015. Provisions, which includes the amount set aside for bad loans, more than doub led from the previous fiscal to Rs 5,470 crore. Stressed loans -which includes loans in default and loans where the borrower is in trouble but have been given more time to repay -stands at Rs 57,586 crore or 15% of total loans as on March 2016.