InvestorQ : Why did Bank of Baroda dip into such a steep loss in the Jun-20 quarter?
Anu Biswas made post

Why did Bank of Baroda dip into such a steep loss in the Jun-20 quarter?

Answer
user profile image
Neelam Naik answered.
1 month ago


For the quarter ended Jun-20, Bank of Baroda reported a net loss of Rs.864.3 crore largely on account of heavy provisioning on standard accounts. It may be recollected that BOB had reported healthy profits of Rs.709 in the Jun-19 quarter.

BOB provided Rs.1811 crore as provision towards standard accounts leading to the huge consolidated loss in the books of BOB in the Jun-20 quarter. Net interest income or NII was up 4.9% at Rs.6816 crore.

The bank has actually scored well on other parameters. Advances growth stood at 8.6% with retail loans growing at 13.5%. The retail deposit grew by 10.4% leading to the domestic CASA ratio higher by 2.94% at 39.49% of the total deposit base.

There was good news on the asset quality front. Gross NPAs fell to 9.39% while net NPAs fell to 2.83% in the Jun-20 quarter. On the reclassification of loans, BOB has extended asset classification benefit to loans to the tune of Rs.14,360 crore. Provision coverage ratio has improved to above 83%.