State-owned Bank of Baroda (BoB) today reported a net loss of Rs 3,102.34 crore for the January-March quarter of 2017-18 due to higher provisioning for mounting bad loans.
State-owned Bank of Baroda (BoB) today reported a net loss of Rs 3,102.34 crore for the January-March quarter of 2017-18 due to higher provisioning for mounting bad loans. The lender had registered a net profit of Rs 154.72 crore in the corresponding quarter of 2016-17.
Provisions for bad loans jumped to Rs 7,052.53 crore in the March quarter, from Rs 2,425.07 crore in the same period of 2016-17, according to a regulatory filing by the bank. Total income dropped to Rs 12,735.16 crore in the last quarter of 2017-18 from Rs 12,852.44 crore in the year-ago period.
Asset quality of the bank worsened as gross non-performing assets (NPAs) or bad loans surged to 12.26 per cent of gross advances as on March 31, 2018, against 10.46 per cent as on March 31, 2017. In absolute value, gross NPAs were Rs 56,480.39 crore, up from Rs 42,718.70 crore a year ago. Net NPAs were at 5.49 per cent (Rs 23,482.65 crore) as of March 2018 against 4.72 per cent (Rs 18,080.18 crore) in the year ago period.
The bank said its board of directors at the meeting held today did not declare any dividend for 2017-18. Besides, the board approved to raise additional fund of Rs 10,000 crore until March 2019 and more if needed. Of this, Rs 6,000 crore is to be raised through common equity capital through various modes and Rs 4,000 crore by way of additional tier I/II capital instruments to be floated in India or overseas in suitable tranches. Shares of the bank closed 1.80 per cent up at Rs 141.20 on BSE