BoB reports net loss of Rs 1,046 cr in Q4, to raise additional Rs 5,000 cr

State-owned lender Bank of Baroda (BoB) reported a standalone net loss of Rs 1,046 crore for the March quarter (Q4FY21). It had posted a profit of Rs 506.6 crore in the same period last year (Q4FY20).

BoB's net interest income (NII) --- the difference between interest earned and interest expended --- increased 4.5 per cent to Rs 7,107 crore for the fourth quarter as compared to Rs 6,798.2 crore in the year earlier period.

The Bank attributed the loss to a shift to new tax structure and on account of DTA reversal. "Excluding the impact of the change in tax regime, Bank would have reported profit after tax of Rs 2,267 crore in Q4FY21," it said in a filing.

Provisioning for bad loans soared 44 per cent to Rs 4,593 crore as against Rs 3,191 crore in the year-ago period. The bank made provisions to the tune of Rs 2,080 crore in the December quarter (Q3FY21).

On a consolidated basis, the net loss of the lender stood at Rs 740 crore for the quarter under review. The Bank has stopped short of declaring any dividend for the financial year 2020-21.

Its operating profit for March quarter stood at Rs 6,266 crore registering an increase of 27.3 per cent year-on-year. Meanwhile, non-interest income for Q4FY21 is up by 71 per cent year-on-year to Rs 4,848 crore. 

The Bank’s gross non-performing assets (NPAs) rose sequentially to 8.87 per cent in Q4FY21. In Q3FY21, gross NPAs of the bank were at 8.48 per cent. Meanwhile, net NPAs stood at 3.09 per cent.

The lender’s advances grew by 4.9 per cent to Rs 6.4 trillion during the March quarter, while domestic deposits rose 6.2 per cent to Rs 8.6 trillion.

Capital adequacy (CRAR) at the end of the quarter stood at 14.9 per cent with CET-1 at 10.94 per cent on a standalone basis.

Domestic advances increased by 4.91 per cenr year-on-year, led by domestic organic retail and agriculture loans which grew by 14.35 per cent and 13.22 per cent respectively. Within retail loans, auto loans increased by 27.79 per cent year-on-year and personal loans grew at 27.21 per cent.

The lender said its board has approved raising of additional capital up to Rs 5,000 crore comprising of Rs 2,000 crore of Common Equity Capital by various modes including QIP, etc. in suitable stages and Rs 3000 cr, by way of Additional Tier I capital/Tier II capital instruments.

Provision Coverage Ratio (PCR) during the quarter increased to 81.8 per cent as compared with 81.3 per cent in the year-ago period.

On Friday, the lender's scrip rose marginally (0.36 per cent) to settle at Rs 83.85 on NSE.