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Five PSU banks post losses of ₹2,564 crore in first quarter

Five PSU banks post loss Rs 2,564 cr in Q1

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.

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