BoB posts Rs991.37 crore net loss
Bank of Baroda (BoB) on Wednesday reported an unexpected loss for the March quarter because of higher provisioning for bad loans.
The bank would have reported higher losses for the March quarter if there were no tax write-back's.Net loss for the quarter stood at Rs991.37 crore, against the net loss of Rs3,102.34 crore in the corresponding quarter of the previous year. It reported a tax write-back of Rs547.13 crore against Rs904.55 crore about an year ago. The bank was expected to gain a profit of Rs913 crore, according to 19 Bloomberg analysts.
Provisions and contingencies surged 93.23% from Rs2,794.20 crore in the December quarter to Rs5,399.29 crore in the three months ended March. Year on year, it was down 19.08% from Rs6,672.38 crore. Gross non-performing assets (NPAs) fell 33.53% from Rs23,482.65 crore in the year-ago period to Rs15,609.50 crore at the end of the March quarter.Net interest income, or the core income a bank earns through BoB’s total deposits were up 8 percent y-o-y to Rs638,690 crore, and net advances increased by about 10 percent to Rs 468,819 crore.
Jayakumar stated in confidence that recovery will exceed slippages. In the reporting quarter, slippage was lower at Rs3,192 crore (Rs11,765 crore in the year-ago quarter), while the reduction in bad loans was higher at Rs8,696 crore (Rs4,569 crore).
Loans, was up 26.6% to Rs5,066.96 crore versus Rs4,002.26 crore last year.
Bank of Baroda is downsizing its overseas operations in a big way. The PSB already exited from Bahamas and Bahrain, as stated by an official. Executive Director, said: “We have surrendered our license in Ghana. By the end of this year, we should be able to wind up the business.” The bank has run down its business in South Africa and has closed down the Durban branch too.
The lender will wind up its operations in China by September.