NEW DELHI: Public lender Bank of Baroda on Wednesday reported narrowing of its losses to Rs 991.37 crore in March quarter against Rs 3,102.34 crore in the corresponding quarter last year.
However, analysts in ET NOW poll had projected a profit of Rs 925 crore.
“Bank posted a loss on account of accelerated specific provisions on NPLs at Rs 5,550 crore from Rs 3,416 crore in the previous quarter,” Bank of Baroda said in a regulatory filing.
Provision and contingencies declined 19 per cent to Rs 5,399.29 crore against Rs 6,672.38 crore in the same period last year. However, the figure spiked 93 per cent from December quarter.
Fresh slippages stood at Rs 3,192 crore for January-March period.
The bank’s asset quality improved with percentage of gross non-performing assets (NPAs) coming in at 9.61 per cent against 11.01 per cent on a sequential basis. The figure stood at 12.26 per cent in the same period last year.
Percentage of net NPAs also eased to 3.33 per cent against 4.26 per cent on a quarterly basis.
Net interest income (NII) of the lender increased 25.73 per cent from Rs 4,863 crore in the year-ago period. Net interest margin (NIM) improved to 2.90 per cent against 2.69 per cent on a sequential basis.
Other non-interest income jumped 47.04 per cent YoY to Rs 894 crore.
The bank considered exposure to six borrowers in infrastructure financial services group as non-performing and made provision of Rs 400.70 crore for the year ended March 31, which was 23.70 per cent of its outstanding amounts.
The bank’s exposure in accounts under NCLT-1 list was Rs 3,908 crore and NCLT-2 stood at Rs 3,831 crore as on March 31. It said the provision coverage under NCLT-1 and NCLT-2 stood at 95.63 per cent and 84.11 per cent, respectively.
Source: Economic Times