Bank of Baroda slumped 8 per cent after the public sector lender posted a disappointing June quarter results with its net profit falling 59.73 per cent at Rs 423.62 crore for the quarter ended June 30, 2016 as compared to Rs 1052.15 crore in the corresponding quarter a year ago. The company’s gross non-performing assets (NPAs) stood at Rs 42,992.68 crore for the quarter ended June 30, 2016 against Rs 17,273.95 crore year ago. Commenting on the June quarter results, brokerage House KRChoksey – Institutional Research said it is disappointed. It further added, “Overall Q1FY17 broadly disappointed with deterioration in asset quality as against the upbeat Management guidance the previous quarter. While sequential slippages were down, the recoveries for the quarter have not stood encouraging. While the Management continues to engage in the balance sheet clean-up exercise, with greater focus on recognizing stress than growth; we highlighted earlier that earnings pressures should sustain.
At 9.52 am, the share price of the company was trading 7.36 per cent down at Rs 148.50. The scrip opened at Rs 153 and touched a high and low of Rs 153 and Rs 147.60, respectuvely, in trade so far. Sensex was trading 18.41 points up at 27,793.29.
The bad loans of the bank raised further as percentage of gross non-performing assets (NPAs) rose to 11.15 per cent of gross advances as on June 30, 2016 against 9.99 per cent for the sequential quarter ended March 31, 2016. Percentage of net NPAs stood at 5.73 per cent against 5.06 per cent on quarter on quarter basis. Fresh slippages of the bank stood at Rs 5527 crore for the quarter ended June 2016 against Rs 5932 crore for the quarter ended March 31, 2016.