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indhumathi Sayani made post

Why was Bank of Baroda seeing so much of selling pressure on 18 December in the second half?

Answer
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Riya Dwivedi answered.
8 months ago


After SBI and PNB, it is now the turn of Bank of Baroda. According to the RBI, BOB underreported bad loans by Rs.5250 crore for the financial year 2018-19. This was put up as part of the risk assessment report brought out by the RBI. Since the divergence is substantial, the bank in a filing with stock exchanges mentioned that divergence in gross non-performing assets (NPAs) assessed by RBI stood at Rs.5250 crore in FY19.

There was also divergence in provisioning for bad loans in FY19 to the tune of Rs.4090 crore. However, Bank of Baroda had already made provision of Rs.1475 crore during the current financial year so the net additional provisions will be Rs.2615 crore.