Bank of Baroda (BoB) on Friday reported an 88.73% y-o-y fall in second quarter net profit at Rs 124.48 crore, led by high provisioning and rising bad loans.

Provisioning other than tax and contingencies rose a whopping 113.02% from the same period last year to Rs 1,891.70 crore. Increase in non-tax provisions was mainly on account of higher provisions against NPAs  during the second quarter, the bank said.

Provisions against NPAs or bad debts written off stood at Rs 1,844 crore in the second quarter. Net Interest Income — the difference between interest earned and expended — fell 4.6% in the second quarter to Rs 3,244.47 crore compared to the same period last year. Net interest margins (NIMs) fell to 2.08% in the second quarter.

Asset quality worsened with gross NPAs as a percentage of gross advances rising 224 bps to 5.56% on a y-o-y basis. On a sequential basis, gross NPAs saw a rise of 143 bps.

Net NPAs rose 134 bps to 3.08% compared to the same period last year, while on a sequential basis, it rose 101 bps. Operating profit also fell 2.74% to Rs 2,337.02 crore.

The bank’s new managing director and CEO, PS Jayakumar, said tough times have not come to an end. “I would say this — we have at least two quarters that are going to be tough,” he said.

The bank said in its exchange filing that it has declared a borrower account  as fraud wherein the total exposure is Rs 374.48 crore as at the end of the second quarter. On this amount, the bank has made a provision of 25% amounting to Rs 93.59 crore during the second quarter and it said that the balance provision shall be made over a period not exceeding three quarters.

“It’s a textile company’s account. We have provided 25% of the exposure — Rs 94 crore. It is a multiple banking account and is not a consortium account,” executive director BB Joshi said.

On the fraud detected at Delhi’s Ashok Vihar branch, the bank said it has estimated a loss of Rs 11 crore on account of unreconciled entries pertaining to outward remittances by way of import advance payments, which is fully provided for. Restructured assets (standard) stood at Rs 22,930 crore as on September 30, 2015, against Rs 25,541 crore as on June 30, 2015. Total advances grew 7.55% y-o-y to R4.14 lakh crore in the second quarter while total deposits grew 8.03% y-o-y to Rs 6.12 lakh crore.