Bank of Baroda has classified its loans to Go First as Non Performing Asset (NPA) and has fully provided for its exposure of Rs 1,200 crore towards the troubled airline which has been under insolvency proceedings since May 2023.
“Our slippage ratio looks elevated but this includes one large aviation account (Go First) worth Rs 1,773 crore. If you exclude this account, slippage ratio would have been 1.08%,” chief financial officer Ian De Souza said in an earnings call on Saturday.
The bank has also made additional provisions to strengthen the balance sheet.
Last month, Central Bank of India had also classified its loans to Go First as NPA. Four banks including Central Bank of India, Bank of Baroda, Deutsche Bank and IDBI Bank have an exposure of over Rs 6,500 crore to the airline.