Bank of Baroda posts ₹3,102 crore loss for Q4 as bad loans surge

Asset quality of the bank worsened as gross non-performing assets or bad loans surged to 12.26% of gross advances as on March 31, 2018, against 10.46% as on March 31, 2017

State-owned Bank of Baroda (BoB) on Friday reported a net loss of ₹3,102.34 crore for the January-March quarter of 2017-18 due to higher provisioning for mounting bad loans.

The Bank of Baroda headquarters is pictured in Mumbai.(Reuters File)

The lender had registered a net profit of ₹154.72 crore in the corresponding quarter of 2016-17.

Provisions for bad loans jumped to ₹7,052.53 crore in the March quarter, from ₹2,425.07 crore in the same period of 2016-17, according to a regulatory filing by the bank.

Total income dropped to ₹12,735.16 crore in the last quarter of 2017-18 from ₹12,852.44 crore in the year-ago period.

Asset quality of the bank worsened as gross non-performing assets (NPAs) or bad loans surged to 12.26% of gross advances as on March 31, 2018, against 10.46% as on March 31, 2017. In absolute value, gross NPAs were ₹56,480.39 crore, up from ₹42,718.70 crore a year ago.

Net NPAs were at 5.49% ( ₹23,482.65 crore) as of March 2018 against 4.72% ( ₹18,080.18 crore) in the year ago period.

The bank said its board of directors at the meeting held today did not declare any dividend for 2017-18.

Besides, the board approved to raise additional fund of ₹10,000 crore until March 2019 and more if needed.

Of this, ₹6,000 crore is to be raised through common equity capital through various modes and ₹4,000 crore by way of additional tier I/II capital instruments to be floated in India or overseas in suitable tranches.

Shares of the bank closed 1.80% up at ₹141.20 on BSE.