The bank had reported a net profit of Rs 155 crore in the fourth quarter of last fiscal, according to a stock exchange filing
Representational Image
Continuing the sequence of losses being reported by state-run banks, Bank of Baroda (BoB) on Friday posted a net loss of Rs 3,102.34 crore for the fourth quarter ending March caused by a rise in provisioning for bad loans.
ADVERTISEMENT
The bank had reported a net profit of Rs 155 crore in the fourth quarter of last fiscal, according to a stock exchange filing. The loss was due to higher provisions on account of the recent Reserve Bank of India's revised framework for stressed assets and large corporate loan slippages, it said. Provisions for non-performing assets (NPAs), or bad loans, for the quarter in consideration jumped 190 per cent to Rs 7,052.53 crore, over the Rs 2,425 crore on the same account during same quarter of last year.
The bank's gross NPAs rose to 12.26 per cent in the January-March quarter, from 10.46 per cent in the corresponding quarter of 2017-18. Net NPAs during the quarter in review increased to 5.49 per cent, from 4.72 per cent in the fourth quarter of last year. While gross NPAs during the fourth quarter stood at Rs 56,480.39 crore, net NPAs were at Rs 23,482.65 crore. The provisioning coverage ratio in the fourth quarter rose marginally at 67.21 per cent as compared to 66.83 per cent a year ago.
"There is a fair movement in overseas transactions and we are getting more A and above rated customers which we didn't have access to earlier," he added. Commenting on the figures, BoB Chief Executive P.S. Jayakumar said in a statement: "We feel positive about the growth, it has been at about 18 per cent (domestic advances growth). In retail, the quality of customers has been on the positive while we are also seeing an improvement in the MSME segment."
The bank said its board has approved the raising of additional capital up to Rs 10,000 crore in the current fiscal subject to regulatory approvals. The Bank of Baroda stock closed on Friday at Rs 141.20 a share, up Rs 2.50, or by 1.80 per cent, over its previous close on the BSE.
Catch up on all the latest Mumbai news, crime news, current affairs, and also a complete guide on Mumbai from food to things to do and events across the city here. Also download the new mid-day Android and iOS apps to get latest updates
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
