Bank of Baroda &ndash the country’s second largest lender &ndash reported a Rs.3,342 crore loss during the Oct-Dec quarter.This is the highest-ever quarter loss posted by an Indian lender.
Key Points
Fresh slippages during the quarter was at Rs.15,603 crore as compared to Rs.3,042 crore during the same period of last year. This has resulted 463% increase in bad loan provisioning requirement to Rs.6,474 crore.
The gross non-performing asset of the bank increased 64 per cent to Rs.38,934 crore which was 9.68 per cent of total loans. The provision coverage ratio of the bank was at 52.7 per cent.
The capital adequacy ratio of the bank was 12.18 per cent, including 9.04 per cent of common equity Tier-I capital.
Background
Most lenders have reported weak earnings for the third quarter after the Reserve Bank of India directed them to classify many accounts as non-performing that were identified by the regulator during an Asset Quality Review (AQR). While RBI gave banks two quarters for making the provisions BoB has made the entire provisioning in the third quarter.
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