Bank of India highlighted a positive reduction in its NPAs, while displaying a slight 3.96% decrease in its y-o-y growth for Q4FY18 with Global Business at Rs 896,850 crores and Net Profit at Rs 3969 crores. Its CASA level improved from Rs 1,66,608 crore to Rs 172,787 crores (following various initiatives), and Domestic Credit showed growth of 6.20% in Agriculture, 6.26% (MSME) and Retail (19.25%), according to Dinabandhu Mohapatra, MD/CEO, Bank of India.
The Bank’s Operating Profit — which stood at Rs.1,172 crore for Q4 2017-18, as against Rs.3,127 crore for Q4-FY 2016-17 – has been impacted by decline in interest income because of rise in NPAs as well as fall in treasury income with respect to last year. The Bank’s Net Profit – which stood at (-) Rs. 3,969 crore in Q4 FY 2017-18 as against (-) Rs. 1,046 crore during Q4-2016-17 – has declined due to provisioning for bad debts as well as for treasury (MTM) losses.
The bank has approved flexible structuring in 21 projects under the 5/25 Flexible Structuring Scheme, which has been implemented in 17 accounts with outstanding of Rs 5,772 crores as on March 31, 2018. Total number of SDR cases identified are in 45 accounts of which 39 have been approved and 6 cases declined. Out of the approved cases, SDR could be partially implemented in four accounts where the bank’s exposure is Rs 932 crores.
Describing Bank of India as the +only bank in the country+ to reduce its Net and Gross NPAs, Mohapatra told mediapersons here today — while announcing the bank’s Q4FY2018 results – that the bank has reduced about Rs 30,000 crores in Risk-weighted Assets while growing in the right direction and continuing from quarter to quarter, he said while pointing out that with GDP growth expected at 7%, the bank is expecting good business response from the market.
The Bank successfully recovered Rs. 9,239 crore out of Rs.9,766 crore assets marked as NPAs on account of divergence mandated by RBI. However, as a result of RBI directive dated 12.02.2018, the Bank had to categorize Rs. 5,107 crore restructured advances as NPAs. Notwithstanding that, the Gross NPAs declined from Rs. 64,249 crore in December, 2017 to Rs.62,328 crore in March, 2018 and Gross NPA ratio improved from 16.93% in December, 2017 to 16.58% in March 2018.
“Bank of India had reduced its NPA by 2% from December 2017 and the outlook was very good including the response from the NCLT. Standard Restructuring book was down significantly and corporates were showing more seriousness in addressing their issues. The NCLT (I) exposure is Rs 8300 crores and NCLT (II) exposure is Rs 3,000 crores, and by Q2Fy2018-19 most of this NCLT(I) and NCLT (II) figures will be addressed.”
He said the bank’s Slippages were Rs 1800 in the Power sector and Rs 1800 in Miscellaneous Accounts (though no specific sector). As many 290 of the bank’s ATMs have been closed down due to lack of footfalls, while 25 ‘loss-making’ branches have been identified for closing down, he said while noting that the bank is concentrating on rationalization of its international branches and identified nine such places including Beijing, of which the Dubai and Myanmar branches have been closed down.
To a question about Non-Core Assets sale, he said that before Q2,2018-19, some Assets would be sold. However the sale of these Assets was taking time due to response prices, he said while adding that the Bank was targeting Rs 1,000 crores in real estate assets.
