Bank of Baroda posts Rs 31.02 bn loss for Jan-Mar as bad loans surge

State-owned Bank of Baroda (BoB) on Thursday reported a net loss of Rs 31.02 billion 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 1.54 billion in the corresponding quarter of 2016-17.

Provisions for bad loans jumped to Rs 70.52 billion in the March quarter, from Rs 24.25 billion in the same period of 2016-17, according to a regulatory filing by the bank.

Total income dropped to Rs 127.35 billion in the last quarter of 2017-18 from Rs 128.52 billion 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 564. 80 billion, up from Rs 427.18 billion a year ago.

Net NPAs were at 5.49 per cent (Rs 234.82 billion) as of March 2018 against 4.72 per cent (Rs 180.80 billion) 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 100 billion until March 2019 and more if needed.

Of this, Rs 60 billion is to be raised through common equity capital through various modes and Rs 40 billion 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.