Bank of India expects to be profitable by September-end
State-run lender Bank of India, which incurred losses for two consecutive financial years, is hopeful of turning profitable by the end of the second quarter ending September of the current fiscal, an official said on Saturday.
The lender narrowed down the net losses from ₹ 6,089.21 crore in 2015-16 to ₹ 1,558.34 crore by end of 2016-17.
"We are hopeful that the bank will be able to make a profit by September end unless anything unforeseen happens," the lender's Managing Director and Chief Executive Officer Dinabandhu Mohapatra told reporters here.
He said though the bank incurred losses in the last two years, its operating profit remained strong and its provision coverage ratio stood at 62 per cent for covering up the bad loans which were above the industry level.
Speaking on the bank's exposure into the 12 large NPA (non performing asset) accounts identified by the Reserve Bank of India (RBI), he said: "We have exposure in 10 accounts, out of 12. Our exposure would be around Rs 7,000-8,000 crore."
The RBI had identified 12 large accounts with exposure of more than Rs 5,000 crore and more than 60 per cent of which is recognised as NPAs. Banks have to refer to the Insolvency and Bankruptcy Code for these accounts.