Bank Of Baroda Posts First Loss In Two Years As Provisions Nearly Triple

Bank of Baroda Ltd. reported a higher-than-expected loss in the quarter ended March as bad loans continued to rise and provisions nearly tripled.The lender’s net loss stood at Rs 3,102 crore compared to a profit of Rs 154.72 crore a year ago, according to its stock exchange filing. The consensus of analyst estimates tracked by Bloomberg had projected a Rs 28-crore loss.Bad loans rose to 12.26 percent of total assets from 11.3 percent in the previous quarter. The absolute value of non-performing assets too increased 16.5 percent sequentially to Rs 56,480 crore. The net non-performing asset ratio rose about 50 basis points to 5.49 percent. Provisions for bad loans surged nearly threefold to Rs 7,052.5 crore from Rs 2,425 crore a year ago..Net interest income rose 11.7 percent year-on-year to Rs 11.7 crore.The lender reported a gross NPA divergence of Rs 2,918 crore in financial year 2017.Capital aduequacy ratio improved sequentially to 12.13 percent, but was lower than the 12.24 percent in the same quarter last year.Annualised return on assets turned negative at -1.77 percent from 0.07 percent in the previous quarter.Bank of Baroda's stock closed 1.76 percent higher ahead of the earnings announcements. The stock had fallen 11.4 percent in the January-March period compared to a 5 percent decline in the Nifty Bank index.

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Bank Of Baroda Posts First Loss In Two Years As Provisions Nearly Triple

Bloomberg Quint