BoB Q3 net plummets 55.73% on higher provisions for bad loans

State-run Bank of Baroda today reported a 55.73 per cent fall in its net profit at Rs 112 crore in the quarter ended December due to higher provisions for bad loans.
The bank's net profit stood at Rs 253 crore in the corresponding quarter last year.
Total provisions rose 51 per cent to Rs 3,538 crore in the quarter against Rs 2,342 crore last year same period.
Provisions for non-performing loans jumped 92.71 per cent to Rs 3,155 crore from Rs 1,638 crore from a year ago.
"We have been consistently looking at the provision coverage ratio. It's a conscious decision we have taken that provision coverage ratio should keep on increasing," the banks executive director Papia Senguta told reporters today.

The provision coverage ratio of the bank improved to 68.03 per cent in the quarter from 64.50 per cent in December 2016.

Net interest margin (NIM) for domestic operations improved to 3.24 per cent compared to 2.49 per cent last year in the same quarter.
Gross NPA ratio stood at 11.31 per cent from 11.40 per cent, while net NPAs was at 4.97 per cent as against 5.43 per cent.
Fresh slippages during the quarter were at Rs 4,797 crore from Rs 3,073 crore. "Slippages look elevated from the last quarter because of a couple of large accounts from sectors such as power and infrastructure, which constitutes 85 percent of the total slippages," managing director and CEO, PS Jayakumar said.

The lender recovered Rs 1,460 crore of loans in the reporting quarter as against Rs 1,345 crore during the same period last year.
On divergence, Jayakumar said the final audit report is still awaited.
Banks total business rose by 3.49 per cent to Rs 9,72,645 crore as on December 31 from Rs 9,39,819 crore as at December 31, 2016.
Total deposits stood at Rs 5,73,265 crore as at December 31, 2017 as against Rs 5,89,859 crore as at December 31, 2016.
The scrip of the bank ended up 0.16 per cent at Rs 156.40 on the BSE.