Shares in Bank of Baroda fell 9 per cent, as profits dropped and Non Performing Assets at the bank surged.
Bank of Baroda's first quarter profit fell 59.7 percent to Rs 423.6 crore compared with Rs 1,052.15 crore in year-ago period. Higher costs and tax expenses was what impacted the bottom line of the bank.
The shares of Bank of Baroda were last trading 9 per cent lower at Rs 145.10.
Government banking shares have been rallying in the last few weeks on hopes that non performing assets would have flattened. However, that has not been the case as most PSU banks reported numbers that have been worse than expected.
Union Bank of India, Punjab National Bank, Andhra Bank and now Bank of Baroda have shown asset quality deterioration.
Analysts are not sure how long the pain for the government sector banks would continue. Relatively smaller sized banks like Syndicate Bank, have also reported a poor set of numbers, largely on account of deterioration in the asset quality.
Larger private sector banks like ICICI Bank have also been adversely hit on account of non performing assets.