Bank of India reports loss of Rs 2,957 crore in FY20 on higher provisions; stock falls nearly 4%

Public sector lender Bank of India has closed financial year 2019-20 (FY20) with net loss of Rs 2,957 crore as compared to loss of Rs 5,547 crore in 2018-19, on account of higher non-performing loan provisions of Rs 14,416 crore

Total income of the state-owned lender increased by 8.01 per cent to Rs 49,066.33 crore in FY20 as against Rs 45,426.70 crore in FY19, Bank of India said in a filing to the Bombay Stock Exchange.

For the fourth quarter ended March 31, 2020 (Q4 FY20), Bank of India reported net loss of Rs 3,571 crore as against net profit of Rs 252 crore during Q4 FY19. The loss was attributed to higher provisions on bad debts which increased from Rs 1,503 crore during Q4 FY19 to Rs 7,316 crore in Q4 FY20.

Its total income decreased to Rs 12,215.78 crore, compared with Rs 12,293.59 crore in the year-ago period.

The bank's operating profit increased by 15.20 per cent to Rs 2,653 crore in Q4 FY20 from Rs 2,303 crore in Q4 FY19. For FY20, operating profit rose by 42.34 per cent YoY to Rs 11,519 crore.

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The non-interest income of the bank rose 14.13 per cent YoY to Rs 1,688 crore in March 2020, supported by rise in treasury income. For FY20, non-interest income jumped 44.09 per cent YoY to Rs 6,713 crore, helped by increase in treasury income and recovery in written off accounts.

Net interest income (NII), or the core income a bank earns by giving loans, rose 11.71 per cent from Rs 13,658 crore in FY19 to Rs15,257 crore for FY20.

The bank's provisions doubled to Rs 8,141.92 crore in Q4 FY19 from Rs 4,015.20 in December quarter of FY20, while it stood at Rs 1,897.43 crore in Q4 FY19. "Provision coverage ratio takes a quantum jump from 77.15 per cent in December 2019 to 83.75 per cent in March 2020," Bank of India said.

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On asset quality front, gross non-performing assets (GNPAs) as a percentage of gross advances continued to remain at an elevated level of 14.78 per cent in FY20, slightly better than 15.84 per cent in FY19. The percentage of net NPA stood at 3.88 per cent against 5.61 per cent last year.

In absolute terms, the gross NPAs or bad loans of the bank were at Rs 61,54,993 crore as on March 31, 2020, compared to Rs 60,66,112 crore in the year-ago period.

The bank's global business grew 7.56 per cent YoY to Rs 9,72,026 crore, while the domestic business registered a growth of 12.04 per cent to Rs 8,40,209 crore in March,2020.

Following earnings reports, shares of Bank of India were trading at Rs 52.90 apiece, down 3.60 per cent, as against previous closing price of Rs 54.90 on the Bombay Stock Exchange.