BoI narrows Q4 net loss on lower provisions
Bank of India (BoI) on Monday reported a net loss of Rs 1,046 crore for the March quarter, compared with a loss of Rs 3,587 crore in the year-ago period. The loss narrowed owing to lower provisions and higher other income.
While its other income almost doubled on a year-on-year (y-o-y) basis to Rs 1,754 crore in the March quarter, provisions for bad loans fell 17.5 per cent y-o-y to Rs 4,484 crore.
Bank of India MD & CEO Dinabandhu Mohapatra said the bank is on a path of rebalancing its assets in the next two years. “We will be moving towards retail credit and loans below Rs 5 crore. It will be a different profit scenario for the bank, because simply growing will not be very helpful,” he said.
“We are not thinking of winding down any assets on the corporate side, but we will rebalance the entire portfolio and are aiming for profitability in the first quarter of the current fiscal year,” Mohapatra said.
According to him, BoI has initiated several new arrangements through which will track its NPA accounts and accounts which are not expected to be viable. “At the same time, we are also aiming at reviving whichever units which are earning cash flow and which can again become performing assets…”.