Bank of India posted a quarterly loss on Monday as the state-run lender set aside more provisions for bad loans.
Net loss was Rs. 1,156 crore ($158.43 million) for the three months ended September 30, compared with a profit of Rs. 179 crore a year earlier.
Provisions for bad loans jumped 51.5 per cent to Rs. 2,828 crore, while total provisions surged 71.2 per cent to Rs. 3,343 crore.
However, asset quality improved slightly from the previous quarter, with gross bad loans as a percentage of total loans standing at 16.36 per cent at end-September, compared with 16.66 per cent at end-June. This was still higher than 12.62 per cent a year ago.
Shares in Bank of India closed 5.2 per cent lower at Rs. 86.90 apiece on the NSE, whose benchmark index Nifty declined nearly 1 per cent to settle at 10,482, ahead of the earnings announcement by the lender.