State-owned Bank of Baroda on Monday reported a net loss of Rs 864 crore on a standalone basis in the quarter ended June due to increased provisioning for standard accounts.
The bank had reported a standalone profit of Rs 710 crore in the year-ago period.
On a consolidated basis, the lender had reported a net loss of Rs 679 crore in the first quarter of the current fiscal.
"We reported a loss for the (June) quarter of more than Rs 800 crore as against a profit of Rs 700 crore. Most of that is on account of heightened provision of standard assets, which has moved up by nearly Rs 1,800 crore," the bank's managing director and CEO Sanjiv Chadha told reporters.
Of the Rs 1,800 crore, half is due to the provisioning done as per the RBI dispensation for assets that have not slipped on account of the moratorium and the other half of nearly Rs 900 crore is on account of a government-guaranteed loan the bank has, he said. He said the government-guaranteed loan carries a zero percent risk weight and is standard and the provisioning has been done as per the June 7 circular of the RBI on stressed asset resolution.
"We are carrying a very substantial provision on that account which would add up to nearly Rs 2,500 crore between last quarter and this (June) quarter," Chadha said.
The total amount due of the government guaranteed account is Rs 7,600 crore and out of that about Rs 5,600 crore is guaranteed, he added.
The bank's term loan moratorium as a percentage of its total book stands at nearly 21 per cent.
Its global net interest margin (NIM) during the quarter stood at 2.55 per cent and domestic NIM stood at 2.63 per cent as compared with 2.62 per cent and 2.73 per cent, respectively, during the same period of the previous financial year. Net interest income (NII) grew around 5 per cent to Rs 6,816 crore as against Rs 6,497 crore.
Gross NPA ratio fell to 9.39 per cent as against 10.28 per cent while net NPA ratio stood at 2.83 per cent as against 3.95 per cent last year same quarter.
Provision coverage ratio (PCR) improved to 83.30 per cent, compared with 77.34 per cent as on June 30, 2019. Total provision during the reporting quarter stood at Rs 5,628 crore.
Fresh slippages during the quarter stood at Rs 2,740 crore.
Slippage ratio fell to 1.64 per cent compared with 3.56 per cent. Domestic slippage ratio in the quarter stood at 0.45 per cent.
Recoveries in quarter stood at Rs 950 crore.
The lender's executive director S L Jain said the bank has a recovery target of around Rs 13,000 crore for the current fiscal.
On the one-time restructuring of corporates and personal loans announced by the RBI recently, Chadha said the bank is yet to review its portfolio as per the new norms.
Global advances increased by 8.6 per cent led by international, domestic organic retail and corporate loans that grew by 13.93 per cent, 13.5 per cent and 9.16 per cent, respectively.
Domestic CASA ratio increased to 39.49 per cent, higher by 294 basis points year-on-year. Retail term deposits increased by 10.4 per cent.
"The overall growth in terms of deposits has been more muted at 4.3 per cent because we wanted to keep a lid on deposit growth which would not be required to fund advances growth," Chadha said.
He said the bank is looking at raising Rs 13,500 crore additional capital for the year. Of that, Rs 4,500 crore through additional tier-I capital and Rs 9,000 crore through equity.
Effective April 1, 2019, the bank amalgamated Dena Bank and Vijaya Bank with it.
On amalgamation, he said despite COVID-19, the process remains on track.
Of the 1,300 branches, the bank was supposed to rationalise, it has so far rationalised 800 branches, he said. The bank's scrip closed 0.21 per cent up at Rs 48.55 apiece on the BSE on Monday.