BOB posts pre-tax loss of Rs 1,308 cr in Q1 on a rise in provisioning

The bank's net interest income (NII) grew 4.91 per cent on a year on year (YoY) basis from Rs 6,497 crore in Q1FY20 to Rs 6,816 crore in Q1FY21

Bank of Baroda (BoB) posted pre-tax loss of Rs 1,308 crore in the quarter ended June 2020 (Q1FY21) due to rise in provisions for standard assets, including those under moratorium and government-guaranteed loans. It had recorded profit before tax (PBT) of Rs 991 crore in Q1FY20.

Its net loss for the reporting quarter stood at Rs 864 crore against net profit of Rs 710 crore in the corresponding quarter a year ago.

Its stock closed flat at Rs 48.55 per share on the BSE on Monday.Net interest income (NII) of the lender grew by 4.91 per cent on a year-on-year (YoY) basis from Rs 6,497 crore in Q1FY20 to Rs 6,816 crore in Q1FY21. 

However, non-interest income, comprising fees and commissions, among others, fell from Rs 1,916 crore in Q1FY20 to Rs 1,818 crore in Q1FY21.

Its provisions and contingencies rose by 71.32 per cent to Rs 5,628 crore in Q1Fy21 from Rs 3,285 crore in Q1Fy20. BoB made a provision of Rs 1,900 crore for standard assets. Of this, half was for a loan which carries government guarantees and balance for loans under moratorium, said its managing director (MD) and chief executive officer (CEO) Sanjiv Chadha said.

Its asset quality improved during the reporting quarter. Gross non-performing assets (GNPAs) declined to 9.39 per cent in Q1FY21 from 10.28 per cent in Q1FY20. GNPAs were at 9.4 per cent at end of March 2020.

Net NPAs declined to 2.83 per cent in June 2020 from 3.95 per cent in June 2019. Net NPAs were at 3.13 per cent in Mach 2020.Provision coverage ratio (PCR) improved to 83.3 per cent in June 2020 from 77.34 per cent a year ago.

Capital adequacy ratio (CAR) of the bank stood at 12.84 per cent as on June 30, 2020, with tier I at 9.08 per cent. The bank has approval in place to raise up to Rs 9,000 crore via equity shares.