Can BoB spearhead a recovery among PSBs?

Easing accretion of bad loans, stabilising NPA ratios are positives

After several quarters of dilly-dallying on whether the worst is behind Bank of Baroda (BoB), September quarter (Q2) results offer some respite. With gross non-performing assets (NPA) ratio settling at 11.16 per cent and more importantly, gross NPAs restricted at Rs 46,307 crore — almost at par with June quarter levels, it gives investors a ray of hope that BoB is nearing the end of bad loan recognition process. Another positive is the slippages (loans turning bad) ratio declining to 2.8 per cent in Q2 as against 4.7 per cent in June 2017 quarter. The slippages ratio at 3.6 per