Pulled down by heavy provisions for bad assets, state-run Bank of Baroda reported a loss of Rs 3,230.14 crore for the March quarter, the second highest quarterly loss in the Indian banking history.
The bank had reported a loss of Rs 3,342.04 crore in the preceding December quarter, which is the highest quarterly loss by a bank. For the fiscal year 2015-16, which saw an asset quality clean-up, the bank reported a loss of Rs 5,067 crore as against a profit of Rs 3,911.73 crore in the year ago.
It’s total income rose to Rs 12,789 crore in the March quarter. Provisions zoomed up to Rs 6,857 crore from Rs 1,817 crore in the year ago period, on the back of the gross NPA ratio moving up to 9.99 % from 3.72 %.
There was a write-back of Rs 1,055 crore which seems to have helped limit the losses for the bank. It can be noted that after announcing the numbers in the preceding December quarter, it’s newly appointed managing director and chief executive P S Jayakumar had said that the worst is over for the bank and it had decided to take the entire AQR hit in a single quarter.
