Bank of Baroda Net Losses Surge To Rs 3230 Crores As Provisions Rise

Business

oi-Sunil

By Sunil Fernandes

Published: Saturday, May 14, 2016, 10:02 [IST]

Bank of Baroda reported another set of dismal numbers for the quarter ending March 31, 2016 as bad loans mounted and provisions increased.

The net loss for the quarter stood at Rs 3230 crores. Gross NPAs of the bank was near 10 per cent, while the net NPA of the bank stood at Rs 5.06 per cent.

"The additional provision has two components. First provision for credit loss by Rs 2900 crore and this provision is over and above the credit loss provision required as per RBI norms. This has been taken to improve the provision coverage ratio. The second component is provision of Rs 1564 crore for pension liability and which has arising on account of the shift in mortality table," it said in a statement.

Commenting on the bank's performance, PS Jayakumar, Managing Director & CEO said, "The year 2015-16 has been one of transformation addressing NPAs. We are excited by the transformation journey we have embarked on, which will give us leadership position in the banking and financial services sector."

The shares of Bank of Baroda are likely to decline further when it opens for trading on Monday. The shares last closed at Rs 155 on the National Stock Exchange.

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