Bank Of Baroda Declines Over 3% On Under-Reporting Bad Loans

On Wednesday shares of Bank of Baroda fell by 3.35 percent to an intraday low of Rs 98.50.

In a stock exchange filing on Tuesday, the public-sector bank said that it had reported its gross non-performing assets (NPAs) for the year ended March 2019 at Rs 69,924 crore, however, as per the Reserve Bank of India's (RBI) Risk Assessment Report (RAR) for FY2018-19, the gross NPAs stood at Rs 75,174 crore. This results in the bank under-reporting Rs 5,250 crore in NPAs.

Bank of Baroda: Quotes, News

BSE 272.701.95 (-0.72%)

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A similar divergence was seen in reporting net NPAs. While the bank reported net NPAs at Rs 23,795 crore, RBI's report assessed the net NPAs at Rs 29,045 crore.

Further, there was divergence in provisioning for bad loans in FY19 to the tune of Rs 4,090 crore. Of the Rs 4,090 crore divergence in provisions for NPAs, the bank has already made provision of Rs 1,475 crore during the current financial year, reducing the impact to Rs 2,615 crores, the statement said.

Bank of Baroda's net loss for the year ending 31 March, 2019 widened to Rs 10,998 crore from the earlier Rs 8,339 crore after taking into account the divergence in provisioning.

The divergence highlighted by RBI's risk assessment report is for the amalgamated entity. On 1 April 2019, Bank of Baroda absorbed two other state-owned banks, Dena Bank and Vijaya Bank.