MONEY
Saddled with rising bad loans, five public sector banks, including Bank of India, Dena Bank and Central Bank of India, posted a combined loss of ₹2,564 crore for the first quarter ended June. Meanwhile, the country's largest lender SBI witnessed a 78% drop in consolidated profit to ₹1,046 crores against ₹4,714 crore profit in the same quarter a year ago.
Oriental Bank of Commerce (OBC) too reported 61% decline in net profit at ₹ 100.69 crore as against ₹ 257.84 crores in the corresponding April-June quarter of 2015-16. Leading the pack, Bank of India reported a loss of ₹ 741.3 crores as provisions for bad loans nearly doubled.
Provisions and contingencies nearly doubled to ₹ 277 crores as against ₹ 151 crores in the year-ago period. As on June 30, the bank's gross non-performing assets (NPAs) increased to 13.38% of advances as against 6.80 % in the corresponding quarter of last fiscal.
BOI was followed by Central Bank of India registering a net loss of ₹ 600 crores as against a net profit of ₹ 203.6 crores in the April-June quarter of last fiscal.
Provision for bad loans witnessed a two-fold rise to ₹ 1,543.65 crores as against ₹ 580.75 crores in the year-ago period.
Bank of Maharashtra posted a loss of ₹ 397.40 crores for April-June as its provisions almost doubled to ₹ 842.50 crores for the quarter, from ₹ 483.91 crores a year earlier.
At the same time, Dena Bank had to book a loss of ₹279.35 crore.
The gross NPAs of the Dena Bank nearly doubled to 11.88%, as against 6.20% a year ago. In value terms, they were ₹ 9,636.32 crores versus ₹ 4,840.70 crores respectively.
Allahabad Bank reported a loss of ₹ 564.9 crore for the first quarter due to two-fold jump in provision and contingencies to ₹ 1330.7 crore from ₹ 854.7 crore in the year-ago period.