Dolat Capital: Bank Of Baroda Logs Weak Quarter; Earnings To Remain Sluggish
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Dolat Capital Report
Bank of Baroda reported a loss of Rs 86 billion in Q1 FY21 led by higher provisions. Though domestic slippages were muted owing to ongoing loan moratorium, two-third of slippages in Q1 FY21 pertained to the international portfolio.
Slippages from overseas book have been elevated over the last few quarters. The quarter also saw high additions to watch-list from non-banking financial companies and power sector.
The NBFC addition pertained to a single well rated infra financing NBFC account, where the bank has so far made 35% provisions, as per the Reserve Bank of India’s June 7 circular, against a total exposure of Rs 76 billion, 75% of which is govt guaranteed.
Moratorium book stood at 21% of advances by value, based on term loans for which borrowers have not paid July installment.
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