Bank of Baroda Slumps 8% As Results Continue To Be Weak

Published: Monday, May 16, 2016, 11:13 [IST]

Shares in Bank of Baroda fell sharply by as much as 7 per cent, as results continued to be weak with mounting losses.

The stock of Bank of Baroda was last trading at Rs 142, down 8.55 per cent over the previous close. The bank reported a whopping loss of The net loss of Rs 3230 crores for the quarter ending March 31, 2016. Gross NPAs of the bank was near 10 per cent, while the net NPA of the bank stood at Rs 5.06 per cent.

Bank of Baroda Slumps 8% As Results Continue To Be Weak

"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."

Banking stocks have been plagued by persistent weakness, following asset quality concerns. Poor results from ICICI Bank had a sentimental impact on other banking stocks with PSU banking stocks like Punjab National Bank, State Bank of India, Oriental Bank of Commerce and Syndicate Bank seeing deep cuts.

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Story first published: Monday, May 16, 2016, 11:13 [IST]

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