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Bank of Baroda nosedives 10% despite healthy Q3 earnings – Indiainfoline

State-owned Bank of Baroda (BoB) was trading near the lower circuit on Thursday’s session despite recording improvement in financial performance for the quarter ended December 2020 (Q3FY21).

At around 12.17 pm, BoB was trading at Rs66.65 per piece down by 9.75% on Sensex. The stock has hit the lower circuit of Rs66.50 per piece in early deals.

The lender reported a net profit of Rs1,061cr in Q3FY21 against a net loss of Rs1,407cr a year ago same period.

Meanwhile, net interest income (NII) came in at Rs7,749cr, witnessing an increase of 8.65% YoY and 3.21% QoQ. Notably, the bank’s domestic margins (NIM) also rose to 3.07% in Q3FY21.

The bank recorded a 69% decline in provisions to Rs2,080cr in the quarter under review from Rs6,621cr in the corresponding period of the previous year.

Also, the lender’s gross NPA ratio eased to 8.48% in Q3FY21 versus 10.43% of Q3FY20.