Bank of Baroda Q4 net down 32% to Rs1029 crore, bad loans rise.
Bank of Baroda shares slipped over 3 per cent after the public sector lender reported a rise in non-performing loans in the fiscal fourth quarter ending March 2013. State-owned banks have disappointed investors over the past year with poor performance and worsening asset quality.
Bank of Baroda is India’s second biggest public sector lender by market value after State Bank of India.
Bank of Baroda said net non-performing assets (NPAs) rose to Rs. 2,814 crore in the quarter ended March, 2013 against Rs. 2,797 crore in the December, 2012 quarter. Gross NPAs rose to Rs. 7,982 crore against Rs. 7,321 crore in the preview quarter.
Provisions for bad loans rose to Rs. 1,598 crore against Rs. 1,029 crore in the last quarter.
Operationally, Bank of Baroda’s net profit dipped by higher than expected 32 per cent to Rs. 1,029 crore against Rs. 1,518 crore in the corresponding quarter last year. Net interest income, the difference between interests earned on advances and paid on deposits, rose marginally to Rs. 2,814 crore against Rs. 2,797 crore.
The stock traded 2.2 per cent lower at Rs. 689.50 as of 12 p.m. against a 0.10 per cent drop in the Bank Nifty.
Source : NDTV Profit.