INSUBCONTINENT EXCLUSIVE:
The quarterly show by Bank of Baroda may have lacked spark
But that's no dampener for the top brass, which sees a smooth road ahead for the public lender
Higher provisioning was the wrecker-in-chief
Which is why the bank reported a net loss of Rs 3,102.34 crore for the quarter to March
MD and CEO P S Jayakumar told ET that the current non-performing assets are at their peak and may start moving down
We expect slippages this year to be considerably lower
We also need nominal credit losses and healthy return on equity
154.72 crore in the same quarter last year.
For 2017-18, the bank reported net loss of Rs 1,887.10 crore against net profit of Rs 1,814.98
crore in FY17.
Total provisions for bad loans increased to Rs 5,768 crore in January-March, from Rs 2,865 crore in the year-ago period, a
The brokerage firm believes that slippage will remain elevated over the next two quarters and softer net interest margin at 2.4 per cent was
partially impacted by higher income reversals.
Stock of Bank of Baroda was 1.59 per cent up at Rs 143.45 at around 9.57 am
The benchmark Sensex was up 167 points, or 0.48 per cent, at 35,092.03.
Asset quality worsened as gross NPAs or bad loans surged to 12.26
per cent of total advances as on March 31 this year
This compares with 10.46 per cent as on March-end 2017
In absolute value, gross NPAs stood at Rs 56,480.39 crore, up from Rs 42,718.70 crore a year ago.
Net NPAs were at 5.49 per cent (Rs
23,482.65 crore), against 4.72 per cent (Rs 18,080.18 crore).
Fresh slippages in the fourth quarter read Rs 11,765 crore, including Rs 4,274
crore from restructured standard book as per RBI guidelines, the release said.
Return on equity (RoE) slipped to below 5 per cent in FY17
from above 20 per cent in FY12
It came in at -5.8 in FY18
The brokerage house sees RoE at 11.30 per cent and 12.60 per cent in FY19 and FY20, respectively
brokerage house said in a report.
RoE measures the percentage return on the shareholders fund from the business undertaking and also the
overall earnings performance of the company
The stock has plunged over 30 per cent from its 52-week high of Rs 206.60 on October 10 last year.
Ashok Kumar Garg, ED, Bank of Baroda,
If you see our rating migration, those in the A, A+ and BBB categories have substantially gone up and those in the unrated categories have
Even for the retail assets, there is a marked difference in the qualitative growth of the portfolio
