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Bank of India’s Q1 consolidated net profit surges to Rs 846 cr

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Bank of India on Monday reported over five-fold increase in its consolidated net profit for the April-June quarter at Rs 845.78 crore.

Bank of India’s Q1 consolidated net profit surges to Rs 846 cr
Bank of India. (Photo: Facebook/@BankOfIndia)

During the corresponding period of the last fiscal (2019-20), the bank had reported a consolidated net profit of Rs 154.10 crore.

Total income of the bank during the period under review increased to Rs 12,022.48 crore from Rs 11,613.21 crore reported a year ago, Bank of India said in a regulatory filing.

Percentage of gross NPA of the banks declined to 13.86 per cent during the quarter ended June of FY2020-21, from 16.44 per cent in the same quarter last of last fiscal.

The filing said that Covid-19 continues to spread across many countries and in India and the same has resulted in significant volatility and decline in the global and local economic activities.

The situation continues to be uncertain and the bank is evaluating the situation on an ongoing basis. The major challenge for the bank would arise from volatility in cash flows, Bank of India said.

“Despite these events and conditions, there would not be any significant impact on banks results in future and on the going concern assumption,” it said.

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In the current quarter ended June 30, 2020 as a matter of prudence the bank has made a provision of Rs 620.30 crore in SMA (special mention accounts) accounts wherein moratorium due to Covid-19 pandemic was extended.

The total provision of Rs 1,034.78 crore is held by bank as on June 30, 2020. The provision made by the bank is higher than requirement as per the RBI guidelines dated April 17, 2020, it said.

“As per RBI circular dated June 7, 2019 on Prudential Framework for Resolution of Stressed Assets, as on June 30, 2020, the bank holds additional provision of Rs 271.72 crore (for Current quarter NIL) in respect of four borrower accounts, where the viable Resolution Plan has not been implemented within 180 days of review period,” it said.

In respect of RBI referred NCLT accounts, as on June 30, it holds 100 per cent provision of the outstanding value of Rs 3,840.22 crore.

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