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Bank of Baroda Q4 net loss at Rs 3230cr, provision at Rs 6858cr

Chillicious Team

In a shocker, Bank of Baroda has reported a net loss of Rs 3230 crore in January-March quarter from Rs 598.3 crore in corresponding quarter last fiscal. During the quarter, its net interest income (NII) rose 5 percent at Rs 3330.4 crore against Rs 3171.7 crore year-on-year.

However, the lender had a marginal rise in its gross non-performing asset (NPA), but paid a higher provision in Q4. Its provision in Q4FY16 increased to Rs 6858 crore compared to Rs 6164.5 crore on sequential basis and Rs 1817.5 crore YoY.

According to a CNBC-TV18 poll, net profit was expected to be fall 50.6 percent at Rs 295.4 crore in January-March quarter and NII was seen falling 4.4 percent to Rs 3032.6 crore.

In the quarter gone by its gross NPA was up 4.1 percent at 9.99 percent versus 9.68 percent while net NPA was down 11 percent at 5.06 percent versus 5.67 percent quarter-on-quarter. In absolute terms, gross NPA at Rs 40521 crore versus Rs 38934 crore while net NPA was at Rs 19406 crore in Q4FY16 verus Rs 21806 crore (QoQ).

CASA (domestic) deposit on average basis grew by 11.95 percent on YoY basis. Share of domestic CASA deposits stood at 33.48 percent as of March 31, 2016 and on a daily average basis domestic CASA stood at 29.50 percent. 

Domestic advance grew by 6.43 percent on annual basis. Retail advances stood at Rs 50850 crore and constituted 18.1 percent of gross domestic advances as on March 31, 2016. Within the retail advances, the home loan portfolio increased by 10.77 percent to Rs 24968 crore.

Provision coverage ratio (PCR) of the bank improved to 60.09 percent as on March 31, 2016 from 52.70 percent as on December 31, 2015.

“The additional provision has two components.First provision for credit loss by Rs 2900 crore and this provision is over and above the credit loss provision required as per RBI norms. This hasbeen taken to improve the provision coverage ratio. The second component is provision of Rs 1564 crore for pension liability and which has arising on account of the shift in mortality table,” it said in a statement.

 Commenting on the bank’s performance, PS Jayakumar, Managing Director & CEO said, “The year 2015-16 has been one of transformation addressing NPAs. We are excited by the transformation journey we have embarked on, which will give us leadership position in the banking and financial services sector.”