Bank of India on Friday reported a net loss of Rs.741.36 crore in the June quarter against a profit of Rs.129.72 a year ago.
As a result, Bank of India’s provisions increased toRs.2,770.19 crore this quarter compared to Rs.5,470.36 crore last quarter and Rs.1,514.73 crore a year ago.
Provision coverage ratio stood at 53.06% for the quarter ended in June.
“The bank was required to make phased prudential provisions on corporate debt restructuring cases at 2.50% per quarter. However, the bank has made additional provision of Rs.110.33 crore representing the remaining balance of next three quarters,” Bank of India said in its notes to the profit and loss account.
According to a Bloomberg poll of 14 analysts, the bank had been expected to post a net loss of Rs.387.8 crore for the June quarter.
Net interest income, or the core income a bank earns by giving loans, decreased marginally to Rs.2,802.17 crore this quarter compared to Rs.2,912.68 crore a year ago.