BoB reports net loss of Rs 1,046 cr in Q4, to raise additional Rs 5,000 cr

State-owned lender (BoB) reported a standalone net loss of Rs 1,046 crore for the March quarter (Q4FY21). It had posted a profit of Rs 506.6 crore in the same period last year (Q4FY20).

BoB’s net interest income (NII) — the difference between interest earned and interest expended — increased 4.5 per cent to Rs 7,107 crore for the fourth quarter as compared to Rs 6,798.2 crore in the year earlier period.

The Bank attributed the loss to a shift to new tax structure and on account of DTA reversal.

On a consolidated basis, the net loss of the lender stood at Rs 740 crore for the quarter under review. The Bank has stopped short of declaring any dividend for the financial year 2020-21.

Its operating profit for March quarter stood at Rs 6,266 crore registering an increase of 27.3 per cent year-on-year. Meanwhile, non-interest income for Q4FY21 is up by 71 per cent year-on-year to Rs 4,848 crore.

The Bank’s gross non-performing assets (NPAs) rose sequentially to 8.87 per cent in Q4FY21. In Q3FY21, gross NPAs of the bank were at 8.48 per cent. Meanwhile, net NPAs stood at 3.09 per cent.

Domestic advances increased by 4.91 per cenr year-on-year, led by domestic organic retail and agriculture loans which grew by 14.35 per cent and 13.22 per cent respectively. Within retail loans, auto loans increased by 27.79 per cent year-on-year and personal loans grew at 27.21 per cent.

The lender said its board has approved raising of additional capital up to Rs 5,000 crore comprising of Rs 2,000 crore of Common Equity Capital by various modes including QIP, etc. in suitable stages and Rs 3000 cr, by way of Additional Tier I capital/Tier II capital instruments.

Provision Coverage Ratio (PCR) during the quarter increased to 81.8 per cent as compared with 81.3 per cent in the year-ago period.

On Friday, the lender’s scrip rose marginally (0.36 per cent) to settle at Rs 83.85 on NSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Leave a Reply

Your email address will not be published. Required fields are marked *

WP Twitter Auto Publish Powered By :