BoB bleeds as bad loan provision rises, posts a whopping Rs 31-bn loss

Asset quality of the bank worsened as gross NPAs surged to 12.26 per cent of gross advances as of March 31, 2018

State-owned Bank of Baroda (BoB) on Friday 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 1.5 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.

For the year 2017-18, net loss was Rs 24.32 billion compared to net profit of Rs 13.83 billion in FY17.

Asset quality of the bank worsened as