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Increase in bad loan provisioning to ₹5,470 crore in the fourth quarter of 2015-16 from ₹2,256 crore in Q4 FY15 saw Bank of India book a net loss of ₹3,587 crore against a profit of ₹56 crore in the year-ago quarter.
Net interest income in Q4 FY16 rose 12 per cent to ₹3,187 crore from ₹2,846 crore in Q4 FY15. The bank recorded a combined recovery and upgradation of loans worth ₹3,043 crore during the fourth quarter.
FY16 results For the full fiscal FY16, the bank posted a net loss of ₹6,089 crore against a net profit of ₹1,709 crore in FY15. Total provisions more than doubled (from ₹5,693 crore to ₹13,827 crore on a year-on-year basis).
This also included deferred provisions of the previous year worth ₹1,482 crore and provision of ₹1,412 crore for adopting the new LIC mortality table.
Domestic net interest margin stood at 2.50 per cent in FY16.
The bank recorded a combined recovery and upgradation of ₹8,547 crore in FY16.
Capital situation The bank’s capital adequacy ratio stood at 12.01 per cent as per the Basel-III norms, with Tier 1 capital at 9.03 per cent.
Further, the bank reduced its assets by ₹8,784 crore (to ₹6,09,914 crore in March 2016 from ₹6,18,698 crore in March 2015) and brought down its risk-weighted assets by ₹19,769 crore (to ₹3,43,754 crore in March 2016 from ₹3,63,523 crore in March 2015) as part of its measures to consolidate the balance sheet and conserve capital.
Total business The total business of the bank stood at ₹8,94,667 crores in FY16, a 5.19 per cent drop from the ₹9,43,634 crore recorded in FY15.
While deposits decreased 3.55 per cent year-on-year to ₹5,13,005 crores, the CASA (current account savings account) ratio (as a percentage of total deposits) improved to 34.18 per cent in FY16 from 29.48 per cent in FY15.
Gross advances stood at ₹381,662 crore, down 7.30 per cent year-on-year. Gross non-performing assets (NPAs) and net NPAs of the bank were at 13.07 per cent and 7.79 per cent, respectively.
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