Bank of India declared its Q3FY2018-19 results here today with Net Interest Income increased by 33.23% to Rs 3,332 crore in December 2018 from Rs 2,501 crore in December 2017, Non-Interest Income by 60.25% to Rs 1,668 crore in December 2018 as against Rs 1,041 crore in December 2017 and Operating Profit by 68% to Rs 2,273 crore in December 2018, as against Rs 1,354 crore in December 2017.

However, Net Profit (PAT) stood at Rs (-) 4,736 crore in December 2018 against Net Profit of Rs (-) 2,341 crore IN December 2017. The Bank had made additional provisions for certain NPA accounts, including 100% provisions for all the NCLT-1 & 2 accounts, due to which loan loss provisions increased from Rs 4,373 crores in December 2017 to Rs 9,179 crore in December, 2018, which has impacted the PAT, said Dinabandhu Mohapatra, CEO, Bank of India.

Global Business, which contracted due to decline in buyers credit in overseas business, , stood at Rs 8,87,931 crores on December 31, 2018 against Rs 9.05,541 crore on December 31, 2017. However, on a positive note, Domestic Business grew Y-o-Y by 4.41% to Rs 725,264 crore in December 2018 against Rs 6,94,636 crore in December 2017.

Domestic Advances increased by 11.10% from Rs 2,80,670 crore in December 2017 to Rs 3,11,815 crore in December 2018. RAM Advances (Retail, Agriculture and MSME) increased with 7,71% growth from Rs 1,45,977 crore on December 31, 2017 to Rs 1,56,442 crore as on December 2018.

Describing the bank’s Provision Coverage Ratio of 76.67% as the ‘highest’ in Industry, he said the Bank’s Net NPA ratio had been contained at 5.87% in December 2018 with Gross NPAs coming down to Rs 602,797 crore and Net NPAs decreasing to Rs 19,437 crore.

Highlighting world statistics, he said the latest world outlook showed growth of 3.7% in 2018 but which was likely to weaken due to increasing of tariffs by the USA and China. Domestic growth had declined by  7.1% due to reduced mining and quarrying, while the current accounts deficit remained depreciated by 2.7% during the current financial year, he said while adding that growth in the banking sector was growing strong with Y-o-Y growth up by 14.5% this year from 10% last year.

“The Equity Market, which had fallen, has recovered from November 18 last year, though Overall Profitability is affected due to 12 large NPA accounts being under stress. Initiatives in this regard included: Modifying Recovery Policies; Technology being employed for working efficiency and against fraud; 252 branches selected for connection into ‘iconic’ branches for serivce excellence, closure/merger of 31 branches and five offices and 155 ATMs closed down so far,” he said.

Replying to question, he said that Rs 4700 crores loss was due to Provisions in the NCLT accounts that also affected Profit. Net Slippages were down and would reduce further, while Rs 1,000 crores was expected to be recovered from Non-Core Assets, and the bank’s branches had been reduced to 5118 from 5156 due to its cost-cutting exercise, he added.