Bank of Baroda opens 2% lower after reporting ₹864 crore loss on higher provisions

Bank of Baroda share price dips by 2%BCCL
  • Bank of Baroda's share price was down by 2% as markets opened on Tuesday.
  • The bank reported a net loss of ₹864 crore during the quarter ended June.
  • Nearly 20% of the bank's portfolio is under moratorium and the loss was led by higher provision and contingencies.

State-owned Bank of Baroda's share price was down by nearly 2% as markets opened on Tuesday. The bank reported a standalone net loss of ₹864 crore during the quarter ended June of the current fiscal year, due to higher provisions and contingencies. The bank had posted a net profit of ₹710 crore in the same quarter a year ago.

Bank of Baroda share price since AprilBSE/BI India

"On account of provisioning on standard accounts of Rs 1,811 crore, bank reported a (standalone) net loss of ₹864 crore in Q1 FY21 and consolidated net loss stood at ₹679 crore," Bank of Baroda said in a regulatory filing.

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Interest income of the lender during the April-June quarter of 2020-21 was down by 2.38 per cent to ₹ 18,494 crore as against ₹18,944 crore in the year-ago quarter.

Total provisions and contingencies for the quarter jumped by 71.32 per cent to ₹ 5,628 crore from ₹3,285 crore a year ago.

Bank's asset quality improved with the gross non-performing assets (NPAs) falling to 9.39 per cent of the gross advances as on June 30, 2020, from 10.28 per cent by the end-June 2019. Net NPA ratio fell to 2.83 per cent from 3.95 per cent as on June 30, 2019, the bank said.

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Bank of Baroda shares closed at ₹48.55 apiece on the BSE, up 0.21 per cent from the previous close.
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