New Delhi : State-run Bank of India reported 26 per cent drop in net profit at Rs 558 crore in the January-March quarter driven down by asset quality woes. “Lower profit is due to increased provisioning on the slippages which were higher in the quarter,” bank’s chairperson and MD V R Iyer told reporters here.
Total provisioning in the quarter stood at Rs 1,439 crore, up 9.18 per cent as against Rs 1,318 crore in the year ago period. Fresh slippages in the quarter stood at Rs 3,500 crore, she said, exuding confidence that Rs 1,500 crore of those assets will turn standard in the next few quarters. These are “technical slippages” due to factors like promoters not being able to bring in their equity which rendered their account as non-performing, she added.
It restructured Rs 2,394 crore of loans in the period, she said, adding that total restructured assets during the year declined to Rs 5,115 crore as against Rs 8,447 crore.
Net interest income improved to Rs 3,047 crore from Rs 2,476 crore. Non-interest income stood at Rs 914 crore during the quarter as against Rs 1,094 crore.