"Owing to a drop in trading profit (nearly Rs 375 crore), growth in depreciation on investments (428 per cent) on account on unfavourable market conditions and spike in NPA provisioning by about 95 per cent (Rs 470 crore) during the period, the overall profitability has been adversely affected", the bank said in a statement.
Total income of the bank for the October-December 31, 2017 quarter grew to Rs 4,903.07 crore, from Rs 4,557.25 crore registered during year ago period.
BOI's net interest income (NII) saw decline of 12.62% to Rs 2,501.23 crore in Q3FY18, as against Rs 2,862.61 crore a year ago the same period.
Current provisions have more than doubled from Rs 1,866.82 crore in Q2FY18, which would be an increase of 134.25% in Q3FY18.
In the December quarter, net non performing assets (NPA) ratio rose to 11.96 per cent from 10.62 per cent in the same period last fiscal.
In all, it has to make Rs 394.13 crore of additional provisioning, of which Rs 262.75 crore is to be provided for during 2017-18. With lower interest reversals, rate cycle turning and capital raising/government infusion, we expect core PPOP trend to improve meaningfully from FY19F and we expect normalised ROEs of 12 per cent by FY20F. Net interest income (NII) - difference between interest earned and expended -stood at Rs 2,501 crore, down 13 per cent y-o-y.
It may be mentioned that BOI had posted gross NPA of Rs 52,045 crore as on March 2017 which was lower from gross NPA of Rs 66,102 crore assessed by the RBI during the period.
Net NPA of the bank came down to 3.30 per cent as of net advances as on December 31, 2017 from 4.76 per cent registered during same period of previous year. Among the smaller banks, Andhra Bank reported a Rs 532- crore loss and Bank of Maharashtra was in the red by Rs 596 crore.