Bank of Baroda's strong Q2 results instills confidence in investors

Improvement in asset quality led by strong operational growth are key positives for shareholders

The September quarter (Q2) results of Bank of Baroda (BoB) is among the best in recent times. PS Jayakumar, the lender's MD & CEO since October 2015, and his team have walked the talk on improving the bank’s asset quality. While most government-owned banks (PSU Banks) have seen this metric bettering in Q2, BoB outperformed the pack with 20.6 per cent year-on-year reduction in bad-loan provisioning costs and slippages of Rs 22.8 billion coming in at seven-quarter low. Total provisioning cost stood at Rs 24 billion, up 4.3 per cent year-on-year, due to the impact of mark-to-market (investment) losses.

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