BoB posts Q4 net loss at Rs 3,102.34 cr

Source: The Hitavada      Date: 26 May 2018 10:10:43


 

MUMBAI,

(PTI),

THE State-run Bank of Baroda (BoB) on Friday reported a net loss of Rs 3,102.34 crore for the March quarter on higher provisioning for bad assets. It had posted a profit of Rs 154.72 crore in the same quarter last year.Total income dropped to Rs 12,735.16 crore in the quarter, from Rs 12,852.44 crore. For financial year 2017-18, the bank reported a net loss of Rs 1,887.10 crore, against a net profit of Rs 1,814.98 crore in FY17.

Total provisions for bad loans increased to Rs 5,768 crore in the March quarter, against Rs 2,865 crore in the year-ago period, a company release said. RBI rules on stressed assets accelerated recognition of NPA, which in turn led to higher provisioning during the March quarter, bank’s Managing Director and Chief Executive Officer, P S Jayakumar told reporters here. “But it continues to be driven by large corporate exposures, and I think we are coming to the tail end of it,” he said.

The Net Interest Margin (NIM) for domestic operations stood at 2.81 per cent for the March quarter, compared with 2.50 per cent in the same period last year. Global margin stood at 2.43 per cent, against 2.17 per cent. Asset quality of the bank worsened as gross NPAs or bad loans surged to 12.26 per cent of gross advances as on March 31, 2018, against 10.46 per cent as on March 31, 2017.  In absolute value, gross NPAs were Rs 56,480.39 crore, up from Rs 42,718.70 crore a year ago. Net NPAs were at 5.49 per cent (Rs 23,482.65 crore), against 4.72 per cent (Rs 18,080.18 crore).