State-run Bank of India on Tuesday joined its peers to report deeper losses at Rs3,587 crore in the quarter to March as provisions for bad loans more than doubled to Rs5,470 crore.
The bank had reported a net loss of Rs56 crore in the same quarter last year.
“losses in the quarter was on account of higher provisions made for NPAs, for accounts under asset quality review, pension liabilities, Uday scheme and the Punjab food grain case,” the bank’s Managing Director and Chief Executive Melwyn Rego told reporters.
The bank’s total provisions more than doubled to Rs5,470 crore in the March quarter from Rs2,256 crore a year ago as its gross NPAs more than doubled to 13.07 per cent from 5.39 per cent, while net NPA too more than doubled to 7.79 per cent from 3.36 per cent.
In absolute terms, net NPAs stood at Rs27,776.40 crore as against Rs13,517.57 crore.
Rego said the bank made a provision of Rs100 crore with respect to certain NPA accounts sold to asset reconstruction companies during 2014-15, but the provision was deferred to FY16.
The bank provided Rs353 crore towards pension liabilities and Rs1,829 crore for accounts under asset quality review in the quarter.
It also made a provision of Rs298 crore on account of Uday scheme and Punjab foodgrain issue.
“The total impact of the above factors, which are non recurring in nature, is Rs2,580 crore out of a total loss of Rs3,587 crore,” Rego said.
Fresh slippages stood at Rs13,500 crore during the quarter and for the full year they rose to Rs27,500 crore.
“The bank expects to face asset quality challenges though in a much comparatively lower magnitude during the next two to three quarters,” Rego said.