Bank of India hopes for profit turnaround in Q4

Bad loans provisions more than doubling to $1.29b dragged the bank to higher net loss in Q3.

Bank of India is targeting to return to the black in its January to March (Q4) after its losses widened to $666.5m (INR47.38b) in Q3 from $330m (INR23.40b) in the same period a year ago, Reuters reported.

“Going ahead, the main area of focus will be to reduce bad loans and get back to a profit in the Jan-March quarter,” CEO Dinabandhu Mohapatra said, adding the bank expected US$370m (INR26b) to be recovered from bankruptcy cases in Q4.

Also read: India's weakened banking sector awaits stronger credit growth as it tucks bad loans away

In Q3, bad loans more than doubled to $1.29b (INR91.79b) whilst gross addition of bad loans slowed sharply to $610m (INR43.15b) rupees from $2.58b (INR183.29b) in the same period a year ago.

Mohapatra also revealed that the state-run lender had an exposure of $480m (INR34b) to embattled infrastructure conglomerate IL&FS as well as some non-fund exposure to debt-laden carrier Jet Airways.

Here’s more from Reuters.