Net interest income fell 18.4 per cent to Rs 2,501 crore, non-interest income by 70 per cent to Rs 1,041 crore, while operating profit fell 81.5 per cent to Rs 1,354 crore.
During Q3FY18, BOI posted net loss of Rs 2,341.20 crore as against net profit of Rs 101.72 crore in the corresponding period of previous year and net profit of Rs 179.07 crore in the preceding quarter. On quarterly basis, current NII has tumbled by 14% from Rs 2,908.24 crore in Q2FY18. As part of the new and more comprehensive asset classification norms that have come into effect since 2016, loans that have been lent by a consortium of banks need to be classified as an NPA, if it was deemed so by even one of them.
As per data from the Reserve Bank, nine public sector banks, out of the total 21, had gross non-performing asset ratio of above 15 per cent (the percentage of bad loans in terms of total loans outstanding) as of September 30, 2017.
Corporation Bank also reported on Monday a loss of Rs 1,240 crore, as against a profit of Rs 159 crore in the year-ago period.
Net NPA divergence stood at Rs 9,707 crore while the divergence in provisioning was to the tune of Rs 4,350 crore during 2016-17.
We cut our FY18E/19E/20E earnings by 75 per cent/20 per cent/22 per cent respectively and build in capital infusion of ₹8,800 crore as announced by the government. Taking into account the provisioning divergence, the loss had widened to Rs 6,248 crore last fiscal.
Reacting to the numbers, shares of the company opened at Rs 288 and slumped 3.85 per cent to touch an intra-day low of Rs 285 in morning trade on the BSE.