Bank of India narrows net loss to Rs 1045.54 cr


A research report by Jefferies had raised concerns on the "the expensive long-term LNG contracts that GAIL has contracted, a total of 40mmscmd of long-term LNG by FY19, most of which are out of the money versus its spot (cargo)".

"We are not thinking of winding down any assets on the corporate side, but we will rebalance the entire portfolio and are aiming for profitability in the first quarter of the current fiscal year", Mohapatra said.

GAIL has a deal to buy 3.5 million tonnes a year of LNG for 20 years from Cheniere Energy and has also booked capacity for another 2.3 million tonnes at Dominion Energy's Cove Point liquefaction plant.

Bank of India MD & CEO Dinabandhu Mohapatra said the bank is on a path of rebalancing its assets in the next two years.

Earlier, the company had announced that it has signed a first-ever time-swap deal to sell some of its U.S. liquefied natural gas (LNG).

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Provisions and contingencies other than tax for BoI during the quarter stood at Rs 4,736.21 crore, compared with Rs 2,302.57 crore in the sequential quarter and Rs 5,470.36 crore in Q4FY16.

The rise in profit was boosted largely by a turnaround in the Company's Petrochemical business, increase in profits from Gas Transmission business and partial sale of stake in Mahanagar Gas Limited (MGL), despite lower price realisation in Polymer and Liquid hydrocarbons. The Dabhol project is part of Ratnagiri Gas and Power Pvt Ltd, a joint venture by GAIL and NTPC.

Net sales of the company during the quarter under review grew 15.7% at Rs 13,422 crore against Rs 11,596 crore in the corresponding quarter of previous year.

"The quarterly profit without the impact of the above impairment is Rs 1,043 crore, which is higher by 25 per cent on year-on-year basis", he said.

Bank of India's scrip at BSE was trading in red, down by 10.50 per cent from the previous day's close at 2.38 p.m.